Poverty alleviation schemes for high escaping poverty probability: Contract-only, compensation, and capacity-building

In this paper, the authors examine the minimum procurement price and government subsidies for the successful implementation of three Poverty Alleviation Schemes (PASs): Contract-Only Scheme (CO), Contract with Compensation Scheme (CS), and Capacity-building with Training (CT). They consider an agricultural supply chain with a pro-poor enterprise and a group of impoverished farmers who grow, harvest, and sell the product to the pro-poor enterprise, and the government decides to subsidize the pro-poor enterprise for poverty alleviation. The price of the agricultural product and the harvest output are uncertain and negatively correlated. They consider a new type of poverty alleviation objective: the poor farmer escapes poverty if their profit exceeds the poverty line (PEP) and establishes a higher probability of escaping poverty (EPP). They use real coffee and tea prices to capture the skewness of the distribution of product prices in a numerical analysis. They find that (i) the impoverished farmers would benefit from PASs, but the pro-poor enterprise would incur risks because both parties share the uncertainty of harvest output in PASs; (ii) the local government should provide subsidies to the pro-poor enterprise to implement PASs better; (iii) CT and CS have a lower bound for the procurement price as well as local government compensation; and (iv) if the product price exhibits a left-skewed distribution, then the EPP becomes crucial, and a higher procurement price is required to increase the EPP.

• Record URL:
  • https://doi.org/10.1016/j.tre.2023.103364
• Record URL:
  • http://www.sciencedirect.com/science/article/pii/S1366554523003526
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/13665545
• Supplemental Notes:
  • © 2023 Elsevier Ltd. All rights reserved. Abstract reprinted with permission of Elsevier.
• Authors:
  • Xie, Hang
  • Huang, Shihao
  • Chiu, Chun-Hung
  • 0000-0002-0480-3586
• Publication Date: 2024-1

Language

• English

Media Info

• Media Type: Web
• Features: Appendices; Figures; References; Tables;
• Pagination: 103364
• Serial:
  • Transportation Research Part E: Logistics and Transportation Review
  • Volume: 181
  • Issue Number: 0
  • Publisher: Elsevier
  • ISSN: 1366-5545
  • Serial URL: http://www.sciencedirect.com/science/journal/13665545

Subject/Index Terms

• TRT Terms: Agricultural economics; Economic policy; Low income groups; Socioeconomic development; Subsidies; Supply chain management
• Geographic Terms: China
• Subject Areas: Economics; Freight Transportation; Policy; Society;

Filing Info

• Accession Number: 01903478
• Record Type: Publication
• Files: TRIS
• Created Date: Dec 27 2023 11:25AM