To burn or not to burn: sustainable decisions for net-zero in agricultural supply chain
研究农民在作物残渣焚烧与可持续管理之间的决策，分析政府惩罚和高效处理技术如何影响其选择，为农业减排政策提供参考。
Carbon emissions from improper disposal of residues and by-products are a source of growing concern in global agricultural supply chains. In this study, we investigate the strategies of a farmer who prefers to engage in crop residue burning (CRB) and is averse to sustainable residue management (SRM). His strategy is also influenced when he engages with an environmentally conscious social planner like the Government and an organisation specializing in sustainable residue management. We analyse his interactions with the stakeholders under various settings, and provide a numerical illustration using realistic parameters in the Indian context. Our analysis demonstrates that a farmer will reduce CRB either if he has access to a cheaper and more efficient means of SRM, or if he is operating under a social planner’s penalty mandate. While the latter leads to a higher reduction in CRB, it also diminishes the farmer’s utility drastically. Farmer’s interaction with both the stakeholders, yielded better levels of utility for all players. The best results in terms of reduction in CRB is from a residue trade contract with the organisation. Despite the farmer’s aversion towards SRM, we show that the farmer opts for it, if the speed of processing residue is high enough.