An investigation into the cost-sharing mechanism of order agriculture with consideration for green investment
The "processing company + farmer" model is studied for its wide - applicability, targeting high production costs and low farmer participation in green agriculture. Using game theory, we build a model to analyze cost - sharing mechanisms’ effects on green production levels and stakeholders’ profits. Model analysis shows that such a mechanism boosts both processing companies’ and farmers’ profits. Specifically, farmers’ profits rise by 20%, and companies’ by 8%. Higher agricultural product conversion rates amplify this profit growth. This indicates cost - sharing mechanisms’ economic benefits and their role in motivating farmers for green production. In summary, for the "processing company + farmer" model, a cost - sharing mechanism is crucial for profitability and promoting farmer - led green production, supporting sustainable agriculture.
Authors
- Jun Li (ORCID: https://orcid.org/0000-0001-9329-7648)
- Honglin Hu
- Lei Qin (ORCID: https://orcid.org/0009-0000-4440-5884)
- Ouyang Dai
Publication Details
- Journal
- Cogent Food & Agriculture
- Published
- 2025-04-07
- DOI
- https://doi.org/10.1080/23311932.2025.2485324
- Primary Topic
- Sustainable Supply Chain Management
- Type
- article
- Field-Weighted Citation Impact
- 0.00
Funders
- National Natural Science Foundation of China