Study On The Government Subsidy Mechanism Of Cassava-based Bioethanol Supply Chain Under Uncertain Output

With the rapid economic development,resource depletion and global warming have become looming problems.Governments around the world are focusing on the development and utilization of renewable energy,of which bioethanol is considered to be the best alternative to fossil fuels.China’s government has also issued a series of policy documents and invested a lot of money to promote the development of the bioethanol industry,of which cassava-based bioethanol is the main development of bioethanol in China.Since China’s cassava-based bioethanol industry started late,the cassava-based bioethanol supply chain receives less attention and most government subsidy mechanism studies only analyze the effect of a subsidy mechanism.So among the many subsidy mechanisms in the cassava-based bioethanol industry,is there a most effective subsidy mechanism that can make full use of government subsidies to promote the development of the cassava-based bioethanol industry? In addition,in order to achieve the goal of nationwide coverage of automotive bioethanol gasoline in China,the large-scale development of the cassava-based bioethanol industry is particularly important.Obviously,the cassava-based bioethanol industry belongs to the agricultural category and the scale of the cassava-based bioethanol industry depends on the scale of cassava production.However,cassava farmers are often scattered around the country,with small production scale,limited funding capacity,and financing difficulties.So,the government is particularly important in helping cassava farmers solve the problem of capital constraints and promoting cassava farmers to expand their production capacity.Therefore,this paper is based on is based on the cassava-based bioethanol supply chain in China,considers the two funding status of cassava farmers,and constructs two models: i.When cassava farmer has sufficient capitals,three types of government subsidy mechanisms are designed according to the supply chain process.The impact of the three types of government subsidy mechanism on the optimal decision-making of supply chain members and supply chain value was explored,and the effects of the three types of government subsidy mechanism were compared;ii.When cassava farmer’s capitals are constrained,consider the risk of cassava farmer’s bankruptcy and the internal supply chain financingmodel,and analyze the effects of government loss subsidy mechanism on supply chain members’ decisions and supply chain value.The results found that:(1)In the decision-making model of the government subsidy mechanism for the cassava-based bioethanol supply chain with abundant cassava farmer’s capitals,all three types of government subsidy mechanisms can improve the optimal effectiveness of the cassava farmers and bioethanol plants at the same rate.No matter what kind of subsidy mechanism the government implements,it can bring value to the supply chain,and there is a single optimal subsidy rate to maximize supply chain value.The subsidy mechanism for means of production is the most effective subsidy mechanism among the three types of government subsidy mechanisms to enhance the effectiveness of supply chain members and increase supply chain value.(2)In the government subsidy mechanism decision-making model of the cassava-based bioethanol supply chain constrained by cassava farmer’s capitals,although the government only subsidized the bioethanol plant’s financial losses,it can stimulate the cassava farmer’s planting power,increase the cassava plantation to the centralized level,and increase the optimal benefits of bioethanol plant and cassava farmer.Under certain conditions,the government has a unique and optimal subsidy rate that can bring the greatest value to the supply chain.