In addition, in the PPP older adult care project, public participation can not only promote government efficiency but also affect the effective operation of the project. (2) The government should adopt a regulatory strategy that combines subsidy and penalty strategies. Both the single subsidy policy and the penalty policy are too one-sided to give full play to the role of government regulation in the PPP older adult care project. Local governments should formulate flexible subsidy policies and dynamic penalty policies to promote the participation of the private sector in rural older adult care services and restrain their speculative behavior. Figure 3 shows the impact of the participation of the local government and private sector on the strategic choices of local governments.

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