IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i8p3459-d1633765.html
   My bibliography  Save this article

Strategies for Enhancing Social Benefits in Agricultural Waste Management: A Game Theory Approach to Government Subsidy Policies

Author

Listed:
  • Dongzhi Zhang

    (School of Economics and Management, Taiyuan University of Technology, Taiyuan 030000, China)

  • Jie Jin

    (School of Economics and Management, Taiyuan University of Technology, Taiyuan 030000, China
    Shanxi Key Laboratory of Data Factor Innovation and Economic Decision Analysis, Taiyuan 030000, China)

  • Ligong Li

    (School of Economics and Management, Taiyuan University of Technology, Taiyuan 030000, China)

Abstract

This paper explores a resource utilization governance model that uses concentrated industrial production to transform agricultural waste into energy and fertilizer, aiming to reduce surface pollution and support the agricultural Circular Economy (CE). However, challenges such as raw material collection difficulties, low stakeholder participation, and limited social benefits persist. To address these issues, we develop a decision-making game model for an agricultural waste recovery and organic fertilizer production supply chain involving farmers, manufacturing enterprises, and the government. We analyze three subsidy strategies—no subsidy, subsidies to farmers, and subsidies to enterprises—while considering regional factors such as waste density and road complexity. Our results show that subsidies to both farmers and enterprises increase waste recycling and social welfare. Specifically, in regions with high waste density and complex roads, subsidies should target manufacturing enterprises, while in areas with flat terrain and high waste density, subsidies should favor farmers. In regions with low waste density and complex terrain, farmers should be prioritized. These findings propose solutions and policy recommendations for enhancing government involvement in agricultural waste management and guiding corporate investment decisions.

Suggested Citation

  • Dongzhi Zhang & Jie Jin & Ligong Li, 2025. "Strategies for Enhancing Social Benefits in Agricultural Waste Management: A Game Theory Approach to Government Subsidy Policies," Sustainability, MDPI, vol. 17(8), pages 1-27, April.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:8:p:3459-:d:1633765
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/8/3459/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/8/3459/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fathi, Fatemeh & Bakhshoodeh, Mohammad, 2021. "Economic and environmental strategies against targeting energy subsidy in Iranian meat market: A game theory approach," Energy Policy, Elsevier, vol. 150(C).
    2. Sikiru, Surajudeen & Abioye, Kunmi Joshua & Adedayo, Habeeb Bolaji & Adebukola, Sikiru Yesirat & Soleimani, Hassan & Anar, M., 2024. "Technology projection in biofuel production using agricultural waste materials as a source of energy sustainability: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 200(C).
    3. Xingyi Yang & Xiaopei Dai & Yijing Zhang, 2024. "The Government Subsidy Policies for Organic Agriculture Based on Evolutionary Game Theory," Sustainability, MDPI, vol. 16(6), pages 1-24, March.
    4. Qian Li & Jingjing Wang & Xiaoyang Wang & Yubin Wang, 2020. "The impact of alternative policies on livestock farmers' willingness to recycle manure: evidence from central China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 12(4), pages 583-594, June.
    5. Lin, Jun & Li, Yanan & Qian, Yanjun & Liu, Guoquan, 2024. "Effectiveness of government subsidies for biomass-based industries: Incorporating the feedstock acquisition process," Energy Policy, Elsevier, vol. 192(C).
    6. Junpeng Li & Wanglin Ma & Pengcheng Wang & Xianghai Meng, 2024. "Farmers’ willingness to transform untreated livestock manure into organic fertilizer: does information technology adoption make a difference?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(2), pages 5025-5045, February.
    7. Lu, Tianwei & Yao, Enjian & Jin, Fanglei & Yang, Yang, 2022. "Analysis of incentive policies for electric vehicle adoptions after the abolishment of purchase subsidy policy," Energy, Elsevier, vol. 239(PB).
    8. Zhao, Ning & You, Fengqi, 2019. "Dairy waste-to-energy incentive policy design using Stackelberg-game-based modeling and optimization," Applied Energy, Elsevier, vol. 254(C).
    9. Qian Li & Jingjing Wang & Xiaoyang Wang & Yubin Wang, 2020. "The impact of alternative policies on livestock farmers' willingness to recycle manure: evidence from central China," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 12(4), pages 583-594, June.
    10. Tran, Trung Hieu & Nguyen, Thu Ba T. & Le, Hoa Sen T. & Phung, Duc Chinh, 2024. "Formulation and solution technique for agricultural waste collection and transport network design," European Journal of Operational Research, Elsevier, vol. 313(3), pages 1152-1169.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lulu Tou & Jianhua Wang & May Chu, 2024. "From intention to action: Enabling sustainable agriculture in emerging economies through decentralized regulations for manure management," Public Administration & Development, Blackwell Publishing, vol. 44(5), pages 445-459, December.
    2. Xiong, Siqin & Yuan, Yi & Yao, Jia & Bai, Bo & Ma, Xiaoming, 2023. "Exploring consumer preferences for electric vehicles based on the random coefficient logit model," Energy, Elsevier, vol. 263(PA).
    3. Shi, Yi & Deng, Yawen & Wang, Guoan & Xu, Jiuping, 2020. "Stackelberg equilibrium-based eco-economic approach for sustainable development of kitchen waste disposal with subsidy policy: A case study from China," Energy, Elsevier, vol. 196(C).
    4. Wang, Zhuowei & Yu, Jiangbo (Gabe) & Chen, Anthony & Fu, Xiaowen, 2024. "Subsidy policies towards zero-emission bus fleets: A systematic technical-economic analysis," Transport Policy, Elsevier, vol. 150(C), pages 1-13.
    5. Aditya Ramji & Daniel Sperling & Lewis Fulton, 2024. "Sustainable Market Incentives -- Lessons from European Feebates for a ZEV Future," Papers 2401.15069, arXiv.org.
    6. Yang, Huayu & Zhang, Yuhao & Gao, Wenhua & Yan, Bowen & Zhao, Jianxin & Zhang, Hao & Chen, Wei & Fan, Daming, 2021. "Steam replacement strategy using microwave resonance: A future system for continuous-flow heating applications," Applied Energy, Elsevier, vol. 283(C).
    7. Martelli, Emanuele & Freschini, Marco & Zatti, Matteo, 2020. "Optimization of renewable energy subsidy and carbon tax for multi energy systems using bilevel programming," Applied Energy, Elsevier, vol. 267(C).
    8. Zhang, Tong & Burke, Paul J. & Wang, Qi, 2024. "Effectiveness of electric vehicle subsidies in China: A three-dimensional panel study," Resource and Energy Economics, Elsevier, vol. 76(C).
    9. Jia, Wenjian & Jiang, Zhiqiu & Wang, Qian & Xu, Bin & Xiao, Mei, 2023. "Preferences for zero-emission vehicle attributes: Comparing early adopters with mainstream consumers in California," Transport Policy, Elsevier, vol. 135(C), pages 21-32.
    10. Peng, Ruoqing & Tang, Justin Hayse Chiwing G. & Yang, Xiong & Meng, Meng & Zhang, Jie & Zhuge, Chengxiang, 2024. "Investigating the factors influencing the electric vehicle market share: A comparative study of the European Union and United States," Applied Energy, Elsevier, vol. 355(C).
    11. Fei, Chengcheng J. & Kung, Chih-Chun, 2024. "The effects of tiered-electrical-subsidy policy on biopower development," Energy Policy, Elsevier, vol. 193(C).
    12. Shi, Yi & Xu, Jiuping, 2023. "A multi-objective approach to kitchen waste and excess sludge co-digestion for biomethane production with anaerobic digestion," Energy, Elsevier, vol. 262(PA).
    13. Yuniaristanto, & Sutopo, Wahyudi & Hisjam, Muhammad & Wicaksono, Hendro, 2024. "Estimating the market share of electric motorcycles: A system dynamics approach with the policy mix and sustainable life cycle costs," Energy Policy, Elsevier, vol. 195(C).
    14. Ruguo Fan & Rongkai Chen, 2022. "Promotion Policies for Electric Vehicle Diffusion in China Considering Dynamic Consumer Preferences: A Network-Based Evolutionary Analysis," IJERPH, MDPI, vol. 19(9), pages 1-21, April.
    15. Zhao, Chuandang & Xu, Jiuping & Wang, Fengjuan & Xie, Guo & Tan, Cheng, 2024. "Economic–environmental trade-offs based support policy towards optimal planning of wastewater heat recovery," Applied Energy, Elsevier, vol. 364(C).
    16. Jiabin Xu & Tianyi Wang & Jingjing Wang & Cuixia Li & Limei Zhao, 2022. "“Forced Transformation” or “Regulation Capture”—Research on the Interactive Mechanism between Environmental Regulation and Green Transformation of Dairy Farming Subject Production," IJERPH, MDPI, vol. 19(19), pages 1-21, October.
    17. Xueli Ma & Tianyuan Ren & Sardar M. N. Islam, 2024. "Multi-Party Collaboration in Agricultural Green Technology Innovation and Adoption: An Evolutionary Game Approach," Sustainability, MDPI, vol. 16(23), pages 1-34, November.
    18. Correia Sinézio Martins, Edlaine & Lépine, Julien & Corbett, Jacqueline, 2024. "Assessing the effectiveness of financial incentives on electric vehicle adoption in Europe: Multi-period difference-in-difference approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 189(C).
    19. Wang, Yitong & Fan, Ruguo & Du, Kang & Bao, Xuguang, 2023. "Exploring incentives to promote electric vehicles diffusion under subsidy abolition: An evolutionary analysis on multiplex consumer social networks," Energy, Elsevier, vol. 276(C).
    20. Zhang, Xiang & Hu, Xiaoming & Qi, Liang, 2022. "Terminated local subsidy on electric vehicle adoption during the COVID-19 pandemic: The case of Chongqing City," Energy, Elsevier, vol. 259(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:8:p:3459-:d:1633765. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.