Novel Role of Rural Official Organization in the Biomass-Based Power Supply Chain in China: A Combined Game Theory and Agent-Based Simulation Approach
Abstract
:1. Introduction
2. Game-Theoretical Modeling
2.1. Models
2.1.1. Direct-Deal Model (DDM)
2.1.2. Broker Model (BM)
2.1.3. Villagers’ Committee Model (VCM)
2.2. Equilibriums
2.2.1. Direct-Deal Model
2.2.2. Broker Model
2.2.3. Villagers’ Committee Model
3. Agent-Based Modeling
3.1. Simulation Framework
3.2. Agents’ Behaviors
4. Case Study
4.1. Data and Parameter Assumptions
4.2. Simulation Results
4.3. VCM Design Exploration
4.3.1. Preferential Feed-in Tariff
4.3.2. Shipping Distance
4.3.3. VC’s Utility Weight on Public Services and Farmer’s Utility Weight on Net Income
5. Conclusions
Acknowledgments
Author Contributions
Conflicts of Interest
Abbreviations
GHG | greenhouse-gas |
SCP | structure, conduct and performance |
VC | villagers’ committee |
CAS | complex adaptive system |
DDM | direct-deal model |
BM | broker model |
VCM | villagers’ committee model |
USA | United States of America |
NDRC | China’s National Development and Reform Commission |
PRC | People’s Republic of China |
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Priority | Agent | Behavior |
---|---|---|
0 | Plant | Offering the incentive with the feedback regulation to achieve the maximum profit |
−1 | Broker | Deciding the optimal straw price given the plant-offered incentive to pursue the maximum profit |
VC | Deciding the optimal straw price given the plant-offered incentive to gain the maximum utility | |
−2 | Farmer | Deciding the amount of straw supply given the plant-offered incentive (DDM), the broker-offered price (BM) or the VC-offered price (VCM) |
Plant | Calculating the profit in the current round |
Model Parameter | Notation | Value |
---|---|---|
Feed-in tariff for biomass-based power | 0.75 Yuan/kWh 1 | |
Plant’s operation cost per unit of the generated electricity | 0.25 Yuan/kWh 2 | |
Conversion ratio of biomass material to electricity | 650 kWh/t 2 | |
Market price of the biomass product | 150 Yuan/t 2 | |
Storage cost per unit of the straw | 85 Yuan/t 3 | |
Straw collection cost coefficient | 0.002 3 | |
Transportation cost for the farmer | 12 Yuan/t·km 2 | |
Transportation cost for the broker or VC | 8 Yuan/t·km 2 | |
Shipping distance | 15 km | |
VC’s utility weight of public services | 0.8 4 | |
Farmer’s utility weight of net income | 0.8 5 |
Model | Straw Supply (103 t) | Profit of the Plant (103 Yuan) | Farmer’s Utility (103) | Straw Purchasing Price for the Plant (Yuan/t) | Straw Purchasing Price for the Broker/VC (Yuan/t) |
---|---|---|---|---|---|
DDM | 14.97 | 450.00 | 224.04 | 209.94 | N/A |
BM | 14.97 | 900.00 | 224.25 | 264.90 | 29.95 |
VCM | 18.49 | 1111.11 | 474.03 | 264.90 | 33.28 |
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Luo, K.; Zhang, X.; Tan, Q. Novel Role of Rural Official Organization in the Biomass-Based Power Supply Chain in China: A Combined Game Theory and Agent-Based Simulation Approach. Sustainability 2016, 8, 814. https://doi.org/10.3390/su8080814
Luo K, Zhang X, Tan Q. Novel Role of Rural Official Organization in the Biomass-Based Power Supply Chain in China: A Combined Game Theory and Agent-Based Simulation Approach. Sustainability. 2016; 8(8):814. https://doi.org/10.3390/su8080814
Chicago/Turabian StyleLuo, Kaiyan, Xingping Zhang, and Qinliang Tan. 2016. "Novel Role of Rural Official Organization in the Biomass-Based Power Supply Chain in China: A Combined Game Theory and Agent-Based Simulation Approach" Sustainability 8, no. 8: 814. https://doi.org/10.3390/su8080814