The Impact of Digital Finance on Farmers’ Adoption of Eco-Agricultural Technology: Evidence from Rice-Crayfish Co-Cultivation Technology in China

Abstract

Eco-agricultural technology is crucial in alleviating agricultural resource scarcity and environmental pressures. However, financial constraints affect its successful promotion. Digital finance significantly impacts farmers. However, existing research neglects the impact of digital finance on farmers’ adoption of eco-agricultural technology. This study focuses on rice-crayfish co-cultivation technology. It utilizes survey data from 1063 households in China. An endogenous switching probit model is employed to solve self-selection bias. The results are as follows: First, the average treatment effect is 51.5%. This indicates that if farmers who use digital finance were to stop using it, the probability of adopting rice-crayfish co-cultivation technology would decrease by 51.5%. Therefore, digital finance is beneficial for farmers in adopting this technology. Second, heterogeneity analysis shows that the promoting effect of digital finance is a greater promoting effect on older farmers, and on those with lower education levels and higher proportions of agricultural income. This suggests a greater reliance on digital financial services among vulnerable groups. Third, digital finance promotes farmers’ adoption of rice-crayfish co-cultivation technology by alleviating financial constraints, expanding information channels, and increasing social capital accumulation. Overall, the findings offer valuable insights for formulating supportive eco-agricultural policies.