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Agricultural productivity and producer behavior
\"Agriculture plays a key role in economic growth and development. As recently as 1800, more than half the population in most European countries worked on farms and in fields, though this shifted with the industrial revolution. Agricultural efficiencies were not immediately apparent until the middle of the 20th century when yields began to increase and they have continued to grow at a steady pace since. At the same time, inflation-adjusted agricultural commodity prices have been trending downward as increases in supply outpaced increases in demand. Food is an essential good, and while its price is currently low due to its abundance, it is responsible for a large consumer surplus given the highly inelastic demand. Understanding the factors that contribute to the upward trend in yields is of first-order importance for food security and human welfare. This book contains eight chapters that examine the factors behind the remarkably steady increase in yields around the globe, in order to better understand whether this trend can continue into the future and whether it will impose significant environmental externalities. The volume provides fresh and original analyses using methodological innovations to analyze recently available micro-level data sets\"-- Provided by publisher.
Book
The Effectiveness Assessment of Agricultural Subsidy Policies on Food Security: Evidence from China’s Poverty-Stricken Villages
This paper builds a theoretical model based on a representative peasant household in the neoclassical model, comprehensively considers three types of farmer households in China, and evaluates the effects of the agricultural subsidy policy under equilibrium conditions. Based on the two bottom lines of guaranteeing China’s grain security and ensuring no large-scale return to poverty, this paper uses 2010, 2012, and 2014 tracking survey data from the Mutual Aid Fund for Poverty-Stricken Villages in China to construct an econometric model to evaluate agricultural subsidy effectiveness from the three aspects of farmers’ total sown area, total grain output, and total income. The research draws the following conclusions: (1) Agricultural subsidies can significantly increase the sown area, grain production, and total income of farmers in poverty-stricken areas, which is conducive to improving the farmers’ comprehensive capacity for grain production as well as income, and this conclusion remains valid after performing a series of robustness tests and solving endogeneity problems. (2) The effects of the agricultural subsidy policy are affected by natural conditions, economic development levels, and functional orientation of grain production in different regions, and they have divergent influences on farmers’ total sown area, total output, and total income. (3) Agricultural subsidies boost farmers’ willingness to cultivate grain, reduce land abandonment, and increase the total sown area, total output, and total grain income. The willingness to cultivate grain is an important mechanism that affects the effectiveness of the agricultural subsidy policy.
Journal Article
Addressing the effect of meteorological factors and agricultural subsidy on agricultural productivity in India: a roadmap toward environmental sustainability
In the last two decades, the extensive literature that has measured agricultural productivity and growth rate remains controversial and provides few strategies about its main determinants. The present study aims to find out the key determinants of food grain yield (FGY) and examine the role of climate change and agricultural subsidy (SUB) in the context of India using annually data spanning from 1991 to 2018. The current study applied the ARDL modelling to investigate the impacts of climatic factors (average rainfall (RF), mean temperature (AT), and carbon emission (CO
2
) and agricultural subsidy (SUB) on food grain yield (FGY) in the short-and long-term in India. The estimated outcomes indicate that climatic factors such as RF have a positive impact while AT and CO
2
have a negative effect on FGY. Similarly, non-climate variables such as gross capital formation (GCF) and fertilizer usage (FERT) positively contributed to FGY, while the area under crop (LUC), SUB, and employment (AL) negatively affected FGY in India. The results from Granger causality divulge that climatic and non-climatic elements are the main determinants of food grain yield, which have been playing play a significant role in enhancing food grain production and ensuring food security in India. Based on empirical outcomes and findings, some key policy implications emerged. Precisely, government and policy developers should focus on technological innovation and precision agriculture to increase agriculture production and productivity. Government should create funds to curb the climate change problem and promote eco-friendly renewable energy.
Journal Article
The Carbon Emissions Reduction Effect of Green Agricultural Subsidy Policy: A Quasi-Natural Experiment
There is significant interest among policymakers and academics about whether green agricultural subsidy policy (GASP) has achieved its intended effect of reducing agricultural carbon emissions (ACEs) in China. Based on the panel data of 172 prefecture-level cities from 2010 to 2021, this study evaluates the impact and mechanisms of GASP on ACEs’ reduction effect by employing the DID model. The results demonstrate that GASP does significantly reduce carbon emissions. Mechanism tests illustrate that GASP promotes carbon reduction via two mechanisms: enhancing agricultural technology progress efficiency and increasing scale management efficiency. Further heterogeneity analyses reveal that the carbon reduction effects of GASP are particularly prominent in the main grain-producing regions and in cities with higher levels of carbon emissions. The empirical tests and mechanism analyses in this paper can better clarify the function of GASP, enrich and deepen the existing literature, and provide some useful references for carbon reduction.
Journal Article
Study on the Influencing Factors of Green Agricultural Subsidies on Straw Resource Utilization Technology Adopted by Farmers in Heilongjiang Province, China
Due to climate, resource endowment, planting habits, policy publicity, subsidies, and constraints, there have been many problems in the utilization of straw resources in the cold, main grain-producing areas in northern China. Based on the theory of value perception, an analytical framework was constructed, and the ordered logistic model was used to form an empirical analysis of the questionnaire data of more than 60 townships in 7 cities of Heilongjiang Province, trying to analyze the problems existing in the utilization of straw resources. The results show that the external factors include policy subsidy, policy punishment, and transportation convenience. Among the internal reasons, farmers’ personal characteristics, production habits, and perception of technical effectiveness and convenience have a significant impact on the application of straw resource utilization technology. Therefore, improving the intensity and precision of subsidies, strengthening the intensity of punishment, improving the popularization of technology, strengthening the ideological education of farmers to clarify the ecological value of straw resource utilization, and strengthening the construction of infrastructure to improve the convenience of transportation are effective means to promote straw resource utilization technology and promote the green transformation of agriculture.
Journal Article
How Does China’s Agricultural Subsidy Policy Drive More Commercially Productive Small Farmers? The Role of Farmland Scale, Labor Supply, and Cropping Structural Change
This study investigated the impact of China’s agricultural subsidy policy on farmers’ commercial production, indicated by sales market participation. A nationally representative survey data, panel Tobit model, IV Tobit model, and the Correlated Random Effects (CRE) approach were used. The findings reveal that farmers receiving agricultural subsidies have improved crop sales’ share of total output value. Mechanism analysis reveals that agricultural subsidies have driven up farmland scale and increased agricultural labor supply in production, incentivizing the motive for profit maximization among farmers. Meanwhile, agricultural subsidies also encourage farmers to cultivate more grain crops. Policymakers should continue deepening the reform of agricultural subsidies and promoting farmer specialization and commercial production. Moderate-scale operation of farmland should be one of the targets of agricultural subsidies.
Journal Article
Target price policy and rural household income: Evidence from China
Agricultural subsidy policy can improve the planting enthusiasm of rural households by increasing their income. It is of great significance to assess and summarise the effect of the soybean and cotton target price subsidy policy and to determine future policy direction. Using the national rural fixed-observation point socioeconomic survey data from 2009 to 2017, the study employed the difference-in-differences (DID) method to evaluate the impact of the target price policy (TPP) on rural household income in China. TPP had no significant impact on the total income of rural households. Specifically, TPP increased the farm income of rural households but simultaneously reduced the wage income and had no significant impact on the other income. Moreover, the impact of TPP on rural household income varied with the planting scale and income level; the effect of TPP was strong among the non-poor or scale operation rural households. TPP implementation affected rural household farm and wage income by affecting farmers’ allocation of working time and cost input. Therefore, implementing TPP should consider farmers’ participation in non-farm employment, further adjust the subsidy intensity and scope, and combine direct subsidies with the poverty reduction effect in poor areas. The contribution of this article is to explore the implementation effect of target price subsidy policies from the perspective of farmers’ income, to deconstruct farmers’ income, and explore the mechanism of policy action. This paper provides a theoretical basis and policy inspiration for China to improve and adjust the agricultural subsidy policy, mobilise farmers’ enthusiasm to cultivate, and ensure national food security.
Journal Article
Decomposition of China’s CO₂ emissions from agriculture utilizing an improved Kaya identity
In recent decades, China’s agriculture has been experiencing flourishing growth accompanied by rising pesticide consumption, fertilizer consumption, energy consumption, etc. and increasing CO₂ emissions. Analyzing the driving forces of agricultural CO₂ emissions is key requirements for low-carbon agricultural policy formulation and decomposition analysis is widely used for this purpose. This study estimates the agricultural CO₂ emissions in China from 1994 to 2011 and applies the Logarithmic Mean Divisia Index (LMDI) as the decomposition technique. Change in agricultural CO₂ emissions is decomposed from 1994 to 2011 and includes a measure of the effect of agricultural subsidy. Results illustrate that economic development acts to increase CO₂ emissions significantly. Agricultural subsidy acts to reduce CO₂ emissions effectively and has increased in recent years. Policy is needed to significantly optimize agricultural subsidy structure and change agricultural development pathway, if China’s low-carbon agriculture target is to be achieved. This requires not only decreasing pesticide consumption, fertilizer consumption, energy consumption, etc. but also transformation of China’s agricultural development path for optimal outcomes.
Journal Article