Effect of agricultural subsidies on the use of chemical fertilizer

Guo, Lili; Li, Houjian; Cao, Xuxin; Cao, Andi; Huang, Minjun

doi:10.1016/j.jenvman.2021.113621

Cited by 132 publications

(65 citation statements)

References 85 publications

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“…Wang et al [ 37 ] found that financial support for agriculture encouraged farmers to use organic fertilizer instead of chemical fertilizer. Guo et al [ 38 ] found that financial support for agriculture would reduce chemical fertilizer consumption by adopting technology and scale−up. However, some scholars refuted their opinions.…”

Section: Literature Reviewmentioning

confidence: 99%

Financial Support for Agriculture, Chemical Fertilizer Use, and Carbon Emissions from Agricultural Production in China

Guo

Tang

et al. 2022

IJERPH

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In the past 15 years, China has emitted the most carbon dioxide globally. The overuse of chemical fertilizer is an essential reason for agricultural carbon emissions. In recent years, China has paid more and more attention to financial support for agriculture. Therefore, understanding the relationship between chemical fertilizer use, financial support for agriculture, and agricultural carbon emissions will benefit sustainable agricultural production. To achieve the goal of our research, we selected the panel data of 30 provinces (cities) in China from 2000 to 2019 and employed a series of methods in this research. The results demonstrate that: the effect of chemical fertilizer consumption on agricultural carbon emissions is positive. Moreover, financial support for agriculture has a significantly positive impact on reducing carbon emissions from agricultural production. In addition, the results of causality tests testify to one−way causality from financial support for agriculture to carbon emissions from agricultural production, the bidirectional causal relationship between chemical fertilizer use and financial support for agriculture, and two−way causality between chemical fertilizer use and agricultural carbon emissions. Furthermore, the results of variance decomposition analysis represent that financial support for agriculture will significantly affect chemical fertilizer use and carbon emissions in the agricultural sector over the next decade. Finally, we provide several policy suggestions to promote low−carbon agricultural production based on the results of this study. The government should uphold the concept of sustainable agriculture, increase financial support for environmental−friendly agriculture, and encourage the research and use of cleaner agricultural production technologies and chemical fertilizer substitutes.

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Section: Literature Reviewmentioning

confidence: 99%

Financial Support for Agriculture, Chemical Fertilizer Use, and Carbon Emissions from Agricultural Production in China

Guo

Tang

et al. 2022

IJERPH

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“…In addition, the rural-urban migration experience is conducive to reducing fertilizer use [56], so we control for the labor migration variable. Agricultural subsidies also reduced fertilizer use by promoting the adoption of agricultural techniques, a variable that indicates whether the farm received maize producer subsidy is included in the mediation model [57].…”

Section: Variables and Descriptive Statisticsmentioning

confidence: 99%

Land Fragmentation, Technology Adoption and Chemical Fertilizer Application: Evidence from China

Chi

Han

Huan

et al. 2022

IJERPH

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Although it has been widely recognized that land fragmentation has increased chemical fertilizer application, little is known about the role of technology adoption in mitigating these adverse effects. To empirically examine the relationship between land fragmentation, technology adoption and chemical fertilizer application, we developed a mediation model. We applied our analysis to a survey data set encompassing 1,388 farm-level samples collected in 14 Chinese provinces in 2019. Our study demonstrated that land fragmentation can not only directly increase chemical fertilizer application but also indirectly increase it by hindering the adoption of agricultural mechanization technologies (AMT’s) and soil testing fertilization technologies (STFT’s). Both are recognized as potent drivers of fertilizer use reductions. Moreover, the adoption of information and communications technologies (ICT’s) can help mitigate the negative effects of land fragmentation on technology adoption, thus reducing chemical fertilizer application intensity (CFAI). However, the direct effects of land fragmentation on CAFI was unaffected by ICT’s. Our findings suggest that ICT’s have revolutionized farmer recognition, promotion and adoption of agricultural technologies by increasing awareness and diffusion of agricultural technology information.

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“…Agricultural subsidies can significantly reduce the use of chemical fertilizers. Studies have shown that agricultural subsidies increased by 100%, the amount of fertilizer used will reduce by an average of 3.4% [32]. In addition, Veelen [11] connects green finance with the social material allocation of the agricultural sector and proposes that low-carbon agricultural energy can be integrated into investment resources, which provides a new way to reshape environmental climate change and its governance.…”

Section: Introductionmentioning

confidence: 99%

Green Finance, Chemical Fertilizer Use and Carbon Emissions from Agricultural Production

Guo¹,

Shu²,

Song³

et al. 2022

Agriculture

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This study aimed to understand green finance’s impact on fertilizer use and agricultural carbon emissions. We selected the macro panel data of 30 provinces (cities) in China from 2000 to 2019. The main research methods are standardized test framework (cross-sectional dependence, unit root and cointegration test), the latest causal test, impulse response, and variance decomposition analysis. Examined the long-term equilibrium relationship between green finance, fertilizer use, and agricultural carbon emissions. The results show: fertilizer consumption and agricultural carbon emissions have a positive correlation. However, green finance can significantly reduce agricultural carbon emissions. The causal test confirmed the bidirectional causal relationship between agricultural carbon emissions and fertilizer use. At the same time, verified one-way causality from green finance to both of them. Interpret the results of impulse response and variance decomposition analysis: among the changes in agricultural carbon emissions, chemical fertilizers contributed 2.45%, green finance contributed 4.34%. In addition, the contribution rate of green finance to chemical fertilizer changes reached 11.37%. Green finance will make a huge contribution to reducing fertilizer use and agricultural carbon emissions within a decade. The research conclusions provide an important scientific basis for China’s provinces (cities) to formulate carbon emission reduction policies. China has initially formed a policy system and market environment to support the development of green finance, in 2020, the “dual carbon” goal was formally proposed. In 2021, the national “14th Five-Year Plan” and the 2035 Vision Goals emphasized the importance of green finance. It plays an important supporting role in carbon emission reduction goals, and green finance has become an important pillar of national strategic goals.

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Effect of agricultural subsidies on the use of chemical fertilizer

Cited by 132 publications

References 85 publications

Financial Support for Agriculture, Chemical Fertilizer Use, and Carbon Emissions from Agricultural Production in China

Financial Support for Agriculture, Chemical Fertilizer Use, and Carbon Emissions from Agricultural Production in China

Land Fragmentation, Technology Adoption and Chemical Fertilizer Application: Evidence from China

Green Finance, Chemical Fertilizer Use and Carbon Emissions from Agricultural Production

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