Dynamic pollution management strategies and coordination in aquatic product supply chain under eco-compensation: Perspective of extreme weather crisis

• Published in: Journal of environmental management Vol. 370; p. 122917
• Main Authors: Li, Ying, Zhao, Xin
• Format: Journal Article
• Language: English
• Published: England Elsevier Ltd 01.11.2024
• Subjects: Aquatic non-point source pollution; case studies; Conservation of Natural Resources; Ecological compensation; environmental protection; Extreme Weather; Extreme weather crisis; game theory; Land transfer-cost sharing contract; pollution; Stochastic differential game; supply chain; Water Supply; weather; Ecological compensation; Stochastic differential game; Land transfer-cost sharing contract; Aquatic non-point source pollution; Extreme weather crisis
• ISSN: 0301-4797; 1095-8630; 1095-8630
• DOI: 10.1016/j.jenvman.2024.122917

The ecological compensation mechanism emerges as a solution to reduce pollution for aquatic product supply chain. To comprehend the dynamic pollution management strategies and coordination under the ecological compensation mechanism, this study develops a stochastic differential game between farmers and firms from the perspective of extreme weather crisis. The subjects’ optimal decisions are explored in three cases including cooperative case, noncooperative case, and land transfer-cost sharing contract case. Then we simulate theoretical results and illustrate a case study to demonstrate the applicability of ecological compensation collaboration. The results indicate that the extreme weather crisis changes the evolutionary trend and steady state of pollution accumulation. Moreover, the land transfer-cost sharing contract could realize the Pareto improvement in high-risk environment especially after the crisis. But its coordination relies on the ecological compensation coefficient, which gets larger with the interval of [4.9,6.3] after the crisis, compared to the range of [4,5.4] before the crisis. Notably, the contract and ecological compensation mechanism exhibit a complementary relationship in response to the crisis. The findings could provide new inspirations for aquatic product supply chain to balance production and environmental protection. •Extreme weather crises have the potential to alter the trends and steady states of pollution accumulation.•The land transfer-cost sharing contract is more effective in high-risk environments.•A larger ecological compensation coefficient enhances the coordination of the contract.•A stochastic stopping model is employed to characterize extreme weather crises.