Does agricultural fiscal policy improve green development in China’s agriculture sector? Evidence from energy and environmental perspectives

Xiaoli Wu, Mengyuan Xie (), Shaojun Xu, Rilong Fei and An Pan
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Xiaoli Wu: Shaoxing University
Mengyuan Xie: Shanghai University of Finance and Economics
Shaojun Xu: Wuhan University of Technology
Rilong Fei: Wuhan University of Technology
An Pan: Zhongnan University of Economics and Law

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2025, vol. 27, issue 8, No 79, 19945-19967

Abstract: Abstract Green development is of great practical significance to China's sustainable agricultural development. This study aims to evaluate the green development level in China’s agricultural sector and explore the influencing factors of agricultural green development. Based on the data of China’s 30 provinces from 2000 to 2015, we construct the green unified efficiency index by using the non-radial directional distance function method to measure the agricultural green development level, then use the Malmquist decomposition method to explore its dynamic change. Further, we employ the panel threshold regression model to estimate the effects of fiscal expenditure on agricultural green development. The results show that China was staying at a low level of agricultural green development, and extinct regional disparities were found within the sample period. Besides, the impact of fiscal expenditure on agricultural green development had a significant threshold effect with respect to agricultural GDP. Other control factors, including agriculture structure, price of production material, mechanization level, and chemical fertilizer also had significant impacts on the green unified efficiency index. Based on these findings, political suggestions are provided to promote green development in China’s agricultural sector.

Keywords: Green development; Agriculture industry; Fiscal policy; Green unified efficiency; Threshold effect (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10668-024-04770-8

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