A Study on Green Agricultural Production Decision-Making by Agricultural Cooperatives under Government Subsidies

Abstract

As a result of the ongoing development and advancement of green agriculture in China, consumers have benefited in numerous ways from green agricultural products. Consumers are increasingly attempting to purchase green agricultural products. However, there are still some problems in relation to green agricultural products, such as the inability of agricultural co-operatives to meet consumers’ demands due to the low return on investment of green agricultural products. To solve the above problems, this paper constructs an evolutionary game model involving the government, agricultural co-operatives, and consumers. In addition, simulation experiments were conducted to simulate and analyze the stakeholders’ strategic decisions in different situations. The results of this study show that government subsidies are effective in promoting the production of green agricultural products by agricultural cooperatives. The yield of green agricultural products, the degree of greenness of agricultural products, and the additional branding benefits of government subsidies for agricultural cooperatives can significantly influence the willingness of agricultural cooperatives to produce green agricultural products and the willingness of consumers to consume green agricultural products. Finally, some suggestions are given to solve the above problems. The findings of this study can provide a valuable reference for government subsidy strategy makers and valuable insights into the sustainable development of the green produce industry.