Study of synergetic development in straw power supply chain: Straw price and government subsidy as incentive

Abstract

Power generation from straw not only helps to meet the energy demands but also provides an effective way to dispose of straw. However, in order to boost straw power generation industry, many factors such as willingness of farmers, high collection cost and uncoordinated supply chain are the major issues need to be solved. In the present work, synergetic development of the straw power supply chain has been studied by establishing collaborative evolution model and the marginal utility of government subsidy has been defined. Our results showed that in farmer subsystem, the selling price of straw is the order parameter of the straw supply chain and has the positive feedback in straw supply chain system which can lead the development of the system. Increase in selling price can promote the synergistic development of the straw supply chain. The results indicate that the subsidies affect the synergetic development of the straw supply chain, and increase in government subsidies will promote the development of straw power generation system. The findings suggested that a government subsidy of 53 CNY/t would optimize utility, given the existing synergetic system. The results can be helpful for government policy makers to support straw power generation projects.