The effect of agricultural subsidies on chemical fertilizer use: Evidence from a new policy in China

Fan, Pengfei; Mishra, Ashok K.; Feng, Shuyi; Su, Min

doi:10.1016/j.jenvman.2023.118423

Cited by 25 publications

(12 citation statements)

References 65 publications

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“…This finding implied that such subsidies would induce farmers to increase production input and adopt new technologies. Furthermore, these subsidies would enhance production scale and intensity, aligning with Fan et al 's perspective (Fan et al 2023a). Ecological subsidy (SUB4) significantly negatively impacted PE, implying that such subsidies would result in excessive or inefficient use of resources and reduce production scale and intensity.…”

Section: Resultsmentioning

confidence: 53%

Unravelling the bidirectional impact of Chinese agricultural subsidy policy on agricultural efficiency and farmers' income through panel data analysis

Tang,

Liao,

et al. 2024

Agric. Econ. - Czech

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This study examined the bidirectional impact of Chinese agricultural subsidy policies on agricultural efficiency and farmers' income. It employed panel data from 2004 to 2020 across 31 Chinese provinces, and the three-stage least squares method was used for simultaneous estimation. Different regions and farmer types were analysed separately. The findings revealed a significant bidirectional impact of the agricultural subsidy policy on agricultural efficiency and farmers' income, signifying a strong positive feedback loop. Varied types and levels of subsidy policies differently impacted regions and farmer categories, showcasing diverse outcomes and adaptive responses to subsidy policies. The ratio of total subsidy to GDP (SUBGDP) positively impacted production efficiency and per capita disposable income. This result suggests that the subsidy policy helped enhance agricultural production efficiency and increased farmers' income levels. Conversely, the ratio of various subsidies to the total subsidy manifested different directions and degrees of impact on production efficiency and per capita disposable income, suggesting areas where the subsidy policy framework can be optimised. In addition to presenting a theoretical discussion on agricultural subsidy policies, this study provides theoretical insights and policy recommendations for the formulation and implementation of an optimal agricultural subsidy policy.

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Section: Resultsmentioning

confidence: 53%

Unravelling the bidirectional impact of Chinese agricultural subsidy policy on agricultural efficiency and farmers' income through panel data analysis

Tang,

Liao,

et al. 2024

Agric. Econ. - Czech

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“…Through government support, governments actively guide the behavior of firms, stimulating innovation, entrepreneurship, and sustainable initiatives [13]. In the agriculture sector, this kind of support has been promoting environmental protection, green and sustainable agricultural development, and employment [22,26].…”

Section: Discussionmentioning

confidence: 99%

“…In China, subsidies and policies have been implemented during the last decades to protect the economic interests of farmers and improve productivity and the quality of agri-food products. Currently, their goal has been to strengthen the protection of agricultural environmental resources [26]. Emerging countries have been criticizing agricultural subsidies in developed countries arguing that subsidies have been partially responsible for keeping prices low and maintaining poverty in developing countries [27].…”

Section: Introductionmentioning

confidence: 99%

Government Support Mechanisms for Sustainable Agriculture: A Systematic Literature Review and Future Research Agenda

Barbosa

2024

Sustainability

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Government support for enterprises can be provided in different forms, such as subsidies, tax incentives, or direct public investment. Government support can also be given to develop environmentally and socially responsible initiatives. In the agriculture sector, government support involves providing early-warning information from meteorological monitoring, policies to encourage companies and citizens to engage in sustainable behavior, and the organization of disaster relief activities. A comprehensive view of the government support mechanisms employed in the agriculture industry and their possible effects on the adoption of sustainable initiatives is yet to be provided in the literature. Through a systematic literature review of articles published from 1992 to 2023 in the Web of Science and Scopus databases, this study found that subsidies, programs, regulations, and financial assistance are the main mechanisms used by governments to support sustainable initiatives in agriculture. Moreover, our review also found that the reduction in environmental impacts, the stimulus to organic production, industry growth, and rural development are the most common goals of using government support for sustainable agriculture. We also geographically categorize research in this field by showing where research has been produced and where it should be improved. We call for more research focused on support from governments in South America. We also observed that environmental protection, the supply of organic foods, and urban agriculture are frequently impacted when there is not enough government support. At last, we propose some research questions to guide future studies. We expect that policymakers will use the outcomes of this study to guide the design and implementation of new government support mechanisms aimed at improving the sustainable performance of agriculture firms. The outcomes of this study will also help managers make investment decisions.

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“…In addition, coupled with the characteristics of agricultural products, which are highly seasonal, territorial, diverse, and perishable, they are susceptible to information searching and crossborder logistics costs (Reimer, 2008). As a traditionally large agricultural exporter, China has not capitalized on its large export volume to create economies of scale and also lacks a competitive export advantage (Fan et al, 2023;Wang et al, 2023).…”

Section: Literature Review and Research Hypothesismentioning

confidence: 99%

“…There are currently three main global versions of agricultural products classification, namely the Standard International Trade Classification (SITC codes), the Broad Economic Categories Classification (BEC codes) and the Harmonized Commodity Description and Coding System (HS codes). In addition, there are two main classifications of global agricultural products, the World Trade Organization (WTO) and the Food and Agriculture Organization of the United Nations (FAO), both based on SITC codes, which may overestimate the trade balance in agricultural products (Fan et al, 2023). At the same time, it is easy to ignore agricultural export heterogeneity.…”

Section: Classification Of Agricultural Productsmentioning

confidence: 99%

How e-commerce can boost China’s high-quality agricultural exports

Li,

Shi,

Cao

et al. 2024

Front. Sustain. Food Syst.

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IntroductionExport quality improvement is a crucial path for a country or region to climb up the advanced division of labor in the global value chain. For developing countries that have long been at the lower end of the global value chain division of labor, the dominance of agricultural trade is often controlled by international retailers, leading to higher costs of agricultural trade and hindering the upgrading of the quality of agricultural exports. As a traditional agricultural exporting country, China still needs a competitive advantage despite the large scale of its agricultural exports. Currently, e-commerce can provide buyers and sellers with comprehensive transaction information and technical support, allowing them to realize rational allocation of resources and export upgrading. Therefore, studying how e-commerce can promote the quality upgrade of agricultural exports is crucial for China to build a trade power.MethodsThis paper clarifies the mechanism of e-commerce’s theoretical impact on the quality of agricultural exports and then empirically tests it using a high-dimensional fixed-effects model with Chinese customs data from 2000 to 2020 as a sample.ResultsThe results show that e-commerce significantly promotes the quality of agricultural exports in all regions of China, and this conclusion still holds after various robustness tests; the heterogeneity test shows that e-commerce fosters the quality of agricultural exports in eastern China, densely populated regions, and economically underdeveloped regions, especially in the case of heterogeneous products; the mechanism analysis confirms that e-commerce promotes the quality of agricultural exports mainly through the optimization of the agricultural industry chain and supply chain, and the enhancement of the level of servicing. Mechanism analysis confirms that e-commerce improves agricultural export quality mainly through optimizing the agricultural industry chain and supply chain, improving the level of servitization, and docking the demand information of the consumer market, etc. Expanded analysis shows that constructing cross-border e-commerce platforms also significantly improves the quality of micro enterprises’ agricultural exports. This paper enriches the research on e-commerce and agricultural trade.DiscussionThis paper provides an essential reference for constructing a robust agricultural trade country and developing high-quality agriculture. Despite encompassing data up to 2020, in the context of today’s global economic volatility directly affecting agricultural trade, future investigations will broaden the scope to delve deeper into how e-commerce can help countries cope with global economic uncertainty.

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The effect of agricultural subsidies on chemical fertilizer use: Evidence from a new policy in China

Cited by 25 publications

References 65 publications

Unravelling the bidirectional impact of Chinese agricultural subsidy policy on agricultural efficiency and farmers' income through panel data analysis

Unravelling the bidirectional impact of Chinese agricultural subsidy policy on agricultural efficiency and farmers' income through panel data analysis

Government Support Mechanisms for Sustainable Agriculture: A Systematic Literature Review and Future Research Agenda

How e-commerce can boost China’s high-quality agricultural exports

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