Cost-Benefit Analysis of Mulch Film Management and Its Policy Implications in Northern China

Agricultural white pollution is a pressing concern in China. However, the efficiency and rationality of the government's subsidies for mulch film management remain ambiguous. To formulate reasonable policies for mulch film management and optimize fiscal resource allocation, the study employs cost-benefit analysis to evaluate the economic performance of mulch film management. Two environmentally friendly measures being primarily proposed in China, namely the application of thicker mulch film (hereinafter referred to as thicker film) and the substitution of biodegradable mulch film (hereinafter referred to as biodegradable film), are selected for analysis, with conventional mulch film (hereinafter referred to as conventional film) serving as the benchmark for comparison. Primary data obtained through field surveys, supplemented by secondary data from national statistics, industry reports, and literature reviews, are used for the study. Results show that thicker film application is cost-effective, with a net benefit of CNY 3208.8/ha (USD 449.2/ha; 1 CNY = 0.14 USD), which is CNY 253.8/ha (USD 35.5/ha) higher than that of conventional film. The net benefit for biodegradable film application is lower than that for conventional film, at CNY 2244.6/ha (USD 314.2/ha). The results reveal the significant potential of promoting the use of thicker film due to its recycling and economic advantages. Findings imply that the further promotion of its use lies in improving farmers' cognition and optimizing subsidy dimensions to allocate government financial resources more effectively. On the contrary, biodegradable film utilization is unprofitable and relies on continuous external subsidies. The government can optimize the subsidy standard based on the cost-benefit performance of different mulch films applied and provide incentives to promote cost reductions and efficiency increases. Further analysis indicates that sustainable mulch film management entails developing mechanisms to internalize the external benefits of management and innovating a new governance landscape.