The carbon emission reduction effect of agricultural policy——Evidence from China

• Published in: Journal of cleaner production Vol. 406; p. 137005
• Main Authors: Du, Yingying, Liu, Haibin, Huang, Hui, Li, Xiaohan
• Format: Journal Article
• Language: English
• Published: Elsevier Ltd 20.06.2023
• Subjects: agricultural development; agricultural industry; agricultural policy; Agriculture policy; carbon; Carbon emissions reduction; China; funding; income; Prefecture-level cities in China; PSM-DID method; sustainable agriculture; China; Carbon emissions reduction; PSM-DID method; Agriculture policy; Prefecture-level cities in China
• ISSN: 0959-6526; 1879-1786
• DOI: 10.1016/j.jclepro.2023.137005

China has a high agricultural output and is a significant carbon emitter; thus, reducing carbon emissions in the agricultural sector is crucial for achieving carbon neutrality. To address this, China implemented the National Agricultural Sustainable Development Experimental Demonstration Zone policy in 2018, in which reducing agricultural carbon emissions (ACE) is a subject of concern. We explore the impact of the policy on agricultural carbon emissions reduction (ACER) using the propensity score matching and differences-in-differences (PSM-DID) methods with a series of robustness tests based on the panel data of prefecture-level cities in China from 2011 to 2020. The results indicate that: (1) the policy significantly reduces carbon emissions and impacts carbon emission sources, with the results passing the robustness tests. (2) According to the mechanism test, agricultural financial support mediates carbon emissions reduction, and the policy reduces these emissions by decreasing the intensity of fiscal support. (3) The heterogeneity analysis illustrates that the carbon emissions reduction effect is more evident in cities with a small urban-rural income gap and a high proportion of agricultural output value. Finally, we provide suggestions to reduce carbon emissions from the perspective of national and local governments. This paper is particularly relevant for achieving sustainable agriculture development.