 Subsidy modes, waste cooking oil and biofuel: Policy effectiveness and sustainable supply chains in ChinaHuiming Zhang, Lianshui Li, Peng Zhou, Jianmin Hou and Yueming Qiu Energy Policy, 2014, vol. 65, issue C, 270-274 Abstract: Many countries are concerned with the waste-to-energy for economic development and societal welfare. This paper constructs a dynamic game model that, for the first time compares the incentive effects of four common subsidy modes on waste cooking oil supply for biofuel refining and sales of waste cooking oil refined products. The model considers the impact of preferential tax treatment, a raw material subsidy, a sales subsidy and an investment subsidy on the profits of biofuel enterprises and waste cooking oil recyclers. Results indicate that common approaches adopted in developed economies such as raw material price subsidies and finished products sales subsidies increase the profits of both biofuel enterprises and recyclers. On the contrary, investment subsidies, which are relatively common in some regions of China, increase the profits of recyclers, while reducing revenues achieved by biofuel enterprises. To promote the supply chain, policy should give priority to raw material price subsidies and finished products sales subsidies, and for investment subsidies, however, the government should be cautious. Keywords: Waste cooking oil; Biofuel; Subsidy mode (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:65:y:2014:i:c:p:270-274 DOI: 10.1016/j.enpol.2013.10.009 Access Statistics for this article Energy Policy is currently edited by N. France More articles in Energy Policy from Elsevier |
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