A Welfare Economics Perspective on the High-Quality Development of the Elderly Care Service System during the 15th Five-Year Plan Period

XiaoYun Guo

doi:10.63313/EBM.2035

Authors

XiaoYun Guo School of Management, Hebei University, Baoding City, Hebei Province, China Author

DOI:

https://doi.org/10.63313/EBM.2035

Keywords:

15th Five-Year Plan, elderly care service system, high-quality development, welfare economics, incentive compatibility

Abstract

During the 15th Five-Year Plan period, China’s elderly care system is required to shift from scale expansion to high-quality development. From a welfare economics perspective, this paper identifies three major imbalances in the current system: efficiency (resource misallocation and low productivity), equity (Matthew effects and digital exclusion), and incentives (misaligned goals among stakeholders). To address these imbalances, the paper proposes a triple transition—toward allocative and innovation efficiency, developmental universalism, and diverse inclusive incentives. Key policy pathways include establishing a national big-data platform, implementing performance-based payment, integrating medical and elderly care systems, launching an AI+elderly care plan, legalizing the basic service list, creating graduated personal care accounts, promoting digital inclusion, adopting smart government purchasing, utilizing financial tools for the silver economy, and compensating family caregivers. These integrated strategies aim to build an incentive-compatible ecosystem that enhances the well-being and dignity of all elderly people.

References

[1] Wang, L. (2025, December 15). The 15th Five-Year Plan period: How to promote the maturation and standardization of China’s characteristic elderly care service system. Financial Times, p. 6.

[2] Qiu, W., Zhang, R., Zhou, P., et al. (2025, October 31). The “Wenjiang path” to bridge the digital divide among the elderly: A balance between equity and efficiency within an ecological framework. Economic Herald, p. 6.

[3] Tang, L. (2022). Research on the construction and implementation strategies of a community- based home care “medical and elderly care integration” service system from the perspective of collaborative sharing [Doctoral dissertation, Nanjing University of Chinese Medicine]. https://doi.org/10.27253/d.cnki.gnjzu.2022.000817

[4] Zhang, W., Mo, G., & Cheng, L. (2021, September 26). Guangdong accelerates the establishment of a fair, accessible, and universally accessible basic elderly care service system. China Social News, p.

https://doi.org/10.28698/n.cnki.nshhu.2021.002955

[5] Li, H. (2021). Research on the construction of a smart elderly care service system [Master’s thesis, Beijing Jiaotong University]. https://doi.org/10.26944/d.cnki.gbfju.2021.000599

[6] Zhang, S. (2021). Government actions and market mechanisms in the construction of China’s elderly care service system. Social Security Review, 5(1), 129–145.

[7] Zhang, H. (2020). Research on the optimization path of China’s elderly care service system from the perspective of smart elderly care [Doctoral dissertation, Jilin University]. https://doi.org/10.27162/d.cnki.gjlin.2020.007403

[8] The Party Leadership Group of Jiaozuo Municipal Civil Affairs Bureau, CPC. (2020, October 16). Building a smart elderly care service system to improve the quality andefficiency of elderly care services. Jiaozuo Daily, p. 8. https://doi.org/10.28497/n.cnki.njzrb.2020.003231

[9] Research Team of the Macro Research Institute, Shanxi Provincial Development and Reform Commission. (2019). The practice of socialized elderly care in Shanxi (p. 273). Shanxi Economic Publishing House.

[10] Ling, W., & Wang, Y. (2019). Exploring pathways to establishing a unified urban- rural social elderly care service system: An analysis based on 553 survey questionnaires from nine cities in Henan Province. Journal of Hebei University (Philosophy and Social Sciences Edition), 44(1), 132–138.

[11] Huang, X., & Hou, J. (2018). Improving China’s elderly care service system from the perspective of welfare pluralism: Insights from Japan’s experience. Labor and Social Security World, (20), 21–23.

[12] Wang, Y., & Long, Y. (2018). Progress, issues and countermeasures in the development of China’s elderly care service system. Journal of Pudong Cadre College, China, 12(2), 122–129.

[13] Wang, G. (2015). Research on strategies for building a diversified social elderly care service system. China Population•Resources and Environment, 25(12), 166–170.

[14] Zhang, X., & Mei, Q. (2012). Research on the performance evaluation indicator system for community- based home care services. Statistics and Decision- Making, (24), 73–75.

https://doi.org/10.13546/j.cnki.tjyjc.2012.24.017

[15] Qin, Y., & Wu, C. (2012). Analysis of government functions in China’s urban community home- based elderly care service system. Lanzhou Academic Journal, (1), 123–127.

[16] Qi, F. (2010). Research on home- based elderly care in China from the perspective of a harmonious society [Doctoral dissertation, Dalian Maritime University].