Impact of agricultural technological innovation on total-factor agricultural water usage efficiency: Evidence from 31 Chinese Provinces

Wasi Ul Hassan Shah, Gang Hao, Rizwana Yasmeen, Hong Yan and Ye Qi

Agricultural Water Management, 2024, vol. 299, issue C

Abstract: The efficient management of water resources in Chinese agriculture is crucial for ensuring food security and mitigating environmental consequences such as water scarcity and pollution. Agricultural technological innovation is crucial in optimizing agricultural practices and making them more sustainable. To this end, this study investigates the dynamic relationship between agricultural technological innovation and total-factor agricultural water usage efficiency (TFAWUE) in Chinese provinces from 2000 to 2020. The study utilizes the Data Envelopment Analysis (DEA) Malmquist productivity index approach to measure the overall efficiency of water usage in agriculture, known as total-factor agricultural water usage efficiency (TFAWUE). The findings suggest that the mean TFAWUE score of Chinese provinces is 1.1356, surpassing a value of 1. It illustrates that Chinese provinces witnessed a growth of 13.56 in TFAWUE over the study period. Technological change is the primary determinant of growth in the TFAWUE, as technology change (TC) is higher than efficiency change (EC). Subsequently, by employing a rigorous econometrics series, this study provides valuable insights into the intricate dynamics of agricultural technological innovation and its impact on total-factor agricultural water usage efficiency. The study constructs a composite multidimensional index of agricultural technological development, encompassing various technologies pivotal to the agriculture sector. Analysis shows that agricultural technologies enable farmers to implement water conservation practices effectively to enhance agricultural water usage efficiency. However, the farm scale reduces the efficiency of agricultural water usage. Additionally, sprinkler technology positively enhances water usage efficiency in agriculture. These findings provide valuable insights for policymakers in the agricultural sector, offering guidance on sustainable practices and policies for managing water resources in conjunction with improvements in agricultural technologies.

Keywords: Efficiency; DEA Malmquist index; Productivity change; Technology advancement; Farm size; China (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:agiwat:v:299:y:2024:i:c:s0378377424002403

DOI: 10.1016/j.agwat.2024.108905

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