Research On Supply And Demand Side Environmental Regulation Driving Production And Adoption Decision Of Biopesticides

Biopesticides have been considered as a viable alternative to chemical pesticides in the control of agricultural pests and diseases to reduce harmful chemical residues.Environmental regulation is an important means for the government to carry out environmental governance,and plays a key role in promoting the production and adoption of biopesticides.Therefore,based on the background of pesticide supply chain,the government has introduced a series of environmental regulatory policies to limit the environmental pollution of chemical pesticides and drive the promotion of biopesticides.However,in the actual promotion process,there are challenges on both the supply side and the demand side of the pesticide supply chain.On the supply side,biopesticides require enterprises to invest a lot of money in research and development,which makes the price of biopesticides too high,and also leads to farmers’ low cognition and preference for biopesticides,making biopesticides at a competitive disadvantage in the market.The government provides financial subsidies to biopesticides independently developed by manufacturers through the introduction of subsidy incentive regulations,reducing the complexity and high cost of biopesticide technology application and improving the competitiveness of biopesticides in the entire market.In addition,subsidy incentive regulation adopted by the government also has a great impact on the pricing decision of biopesticides.Therefore,how pesticide manufacturers determine the optimal price of biopesticides through subsidy incentive regulation and promote the promotion of biopesticides is a problem worth studying.From the demand side,China’s agricultural production and management mode is mainly small-scale decentralized management,and the majority of farmers have low income.Compared with expensive and technologically complex biological pesticides,efficient and inexpensive chemical pesticides are the primary choice,thus aggravating environmental pollution.Therefore,it is an important challenge for the government to adopt incentive-binding regulation to guide farmers to join agricultural cooperatives and make use of the intensive advantages of cooperatives to reasonably reduce the cost of biopesticides for farmers and effectively reduce the pollution residues of chemical pesticides.Based on this,this thesis will review the previous literature,and build decision models according to different responsibility subjects on both sides of biopesticide production(supply side)and adoption(demand side).Firstly,the optimal pricing of biopesticides driven by government environmental regulations and the effects of subsidy-incentive regulations and farmers’ green preferences on the profits of pesticide supply chain were discussed,and the decisions of all parties in the subsidy-incentive regulation model were compared and their feasibility and effectiveness were analyzed.Secondly,it studied how agricultural cooperatives can optimize the total cost of mixed pesticide adoption strategy and improve the environmental performance in the process of biopesticide adoption driven by environmental regulations.The results show that manufacturers and sellers build Stackelberg game model based on farmers’ green preference under the incentive regulation on the supply side.Under the consideration of subsidy incentive regulation and farmers’ green preference,the overall profit of pesticide supply chain is realized and the optimal pricing of biopesticides and chemical pesticides is determined.Multi-objective programming(MCGP)method was used to construct a collective pesticide adoption(CPA)decision model for mixed pesticides(i.e.,biopesticides and chemical pesticides)in demand-side agricultural cooperatives,taking into account the heterogeneity of farmers in the level of biopesticide application,incentive-binding environmental regulations and CPA related economic factors.Effectively harmonizing the conflicting objectives of cost efficiency and chemical residue reduction ultimately achieved economic and environmental performance over and above the independent adoption of biopesticides(IPA)by farmers,facilitating the effective adoption of biopesticides by farmers.In addition,the CPA decision model is proposed to realize the potential synergistic effect among farmers in agricultural cooperatives.