IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i2p1123-d1027796.html
   My bibliography  Save this article

Public Investment, Environmental Regulation, and the Sustainable Development of Agriculture in China Based on the Decomposition of Green Total Factor Productivity

Author

Listed:
  • Siying Hu

    (College of Economics and Management, Northeast Agricultural University, Harbin 150030, China)

  • Shangkun Lu

    (School of Economics, Harbin University of Commerce, Harbin 150028, China)

  • Huiqiu Zhou

    (College of Economics and Management, Northeast Agricultural University, Harbin 150030, China)

Abstract

This study aims to accurately assess the growth of agricultural total factor productivity and its driving components under the constraints of resources and environment, and provides reliable information for agricultural policy formulation and agricultural development practices. According to the input and output panel data of provincial agricultural planting in China and employing the Global Malmquist–Luenberger (GML) index method and the Bootstrap method, this paper measures China’s agricultural green total factor productivity (GTFP), technical efficiency change (EC), and technical best-practice gap change (BPC). In addition, the Tobit model is applied to analyze the impact of public investment and environmental regulation variables on China’s agricultural GTFP and its components. The results show that (1) China’s agricultural GTFP has steadily improved, and technological promotion is the main contributor; (2) agricultural GTFP and its components present significant spatial differences, which are overall manifested as agricultural priority development zone > agricultural moderate development zone > agricultural protection development zone; and (3) financing support of technical innovation and the intensity of environmental regulation have a significant positive impact on agricultural GTFP and its components. The combination of positive technical innovation support and appropriate environmental regulation helps to improve agricultural GTFP and achieve the sustainable development of China’s agriculture.

Suggested Citation

  • Siying Hu & Shangkun Lu & Huiqiu Zhou, 2023. "Public Investment, Environmental Regulation, and the Sustainable Development of Agriculture in China Based on the Decomposition of Green Total Factor Productivity," Sustainability, MDPI, vol. 15(2), pages 1-21, January.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1123-:d:1027796
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/2/1123/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/2/1123/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Färe, Rolf & Grosskopf, Shawna, 2010. "Directional distance functions and slacks-based measures of efficiency: Some clarifications," European Journal of Operational Research, Elsevier, vol. 206(3), pages 702-702, November.
    2. Hsu, Shih-Hsun & Yu, Ming-Miin & Chang, Ching-Cheng, 2003. "An Analysis Of Total Factor Productivity Growth In China'S Agricultural Sector," 2003 Annual meeting, July 27-30, Montreal, Canada 22227, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Pastor, Jesus T. & Lovell, C.A. Knox, 2005. "A global Malmquist productivity index," Economics Letters, Elsevier, vol. 88(2), pages 266-271, August.
    4. Tone, Kaoru, 2002. "A slacks-based measure of super-efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 143(1), pages 32-41, November.
    5. Dong-hyun Oh, 2010. "A global Malmquist-Luenberger productivity index," Journal of Productivity Analysis, Springer, vol. 34(3), pages 183-197, December.
    6. Fukuyama, Hirofumi & Weber, William L., 2009. "A directional slacks-based measure of technical inefficiency," Socio-Economic Planning Sciences, Elsevier, vol. 43(4), pages 274-287, December.
    7. Mogues, Tewodaj & Yu, Bingxin & Fan, Shenggen & Mcbride, Linden, 2012. "The impacts of public investment in and for agriculture: Synthesis of the existing evidence," IFPRI discussion papers 1217, International Food Policy Research Institute (IFPRI).
    8. Bokusheva, Raushan & Kumbhakar, Subal C. & Lehmann, Bernard, 2012. "The effect of environmental regulations on Swiss farm productivity," International Journal of Production Economics, Elsevier, vol. 136(1), pages 93-101.
    9. Torras, Mariano & Boyce, James K., 1998. "Income, inequality, and pollution: a reassessment of the environmental Kuznets Curve," Ecological Economics, Elsevier, vol. 25(2), pages 147-160, May.
    10. Goulder, Lawrence H. & Mathai, Koshy, 2000. "Optimal CO2 Abatement in the Presence of Induced Technological Change," Journal of Environmental Economics and Management, Elsevier, vol. 39(1), pages 1-38, January.
    11. Huang, Junbing & Cai, Xiaochen & Huang, Shuo & Tian, Sen & Lei, Hongyan, 2019. "Technological factors and total factor productivity in China: Evidence based on a panel threshold model," China Economic Review, Elsevier, vol. 54(C), pages 271-285.
    12. Färe, Rolf & Grosskopf, Shawna, 2010. "Directional distance functions and slacks-based measures of efficiency," European Journal of Operational Research, Elsevier, vol. 200(1), pages 320-322, January.
    13. Falavigna, Greta & Manello, Alessandro & Pavone, Sara, 2013. "Environmental efficiency, productivity and public funds: The case of the Italian agricultural industry," Agricultural Systems, Elsevier, vol. 121(C), pages 73-80.
    14. Jacopo Ponticelli & Bruno Caprettini & Paula Bustos, 2012. "Agricultural Productivity and Industrial Growth. Evidence from Brazil," 2012 Meeting Papers 895, Society for Economic Dynamics.
    15. Shen, Zhiyang & Baležentis, Tomas & Ferrier, Gary D., 2019. "Agricultural productivity evolution in China: A generalized decomposition of the Luenberger-Hicks-Moorsteen productivity indicator," China Economic Review, Elsevier, vol. 57(C).
    16. Magnani, Elisabetta, 2000. "The Environmental Kuznets Curve, environmental protection policy and income distribution," Ecological Economics, Elsevier, vol. 32(3), pages 431-443, March.
    17. Tewodaj Mogues & Shenggen Fan & Samuel Benin, 2015. "Public Investments in and for Agriculture," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 27(3), pages 337-352, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lijiu Zhao & Tao Jin & Lintao Qin & Zaijun Li, 2023. "Chinese Agriculture for “Green and Grain” Productivity Growth: Evidence from Jiangsu Province," Sustainability, MDPI, vol. 15(24), pages 1-14, December.
    2. Qiao Liang & Kangwei Ma & Wenhao Liu, 2023. "The role of farmer cooperatives in promoting environmentally sustainable agricultural development in China: A review," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 741-759, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Hai-ling & Zhu, Xue-hong & Chen, Jin-yu & Jiang, Fei-tao, 2019. "Environmental regulations, environmental governance efficiency and the green transformation of China's iron and steel enterprises," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    2. Tao, Feng & Zhang, Huiqin & Hu, Jun & Xia, X.H., 2017. "Dynamics of green productivity growth for major Chinese urban agglomerations," Applied Energy, Elsevier, vol. 196(C), pages 170-179.
    3. Gómez-Calvet, Roberto & Conesa, David & Gómez-Calvet, Ana Rosa & Tortosa-Ausina, Emili, 2014. "Energy efficiency in the European Union: What can be learned from the joint application of directional distance functions and slacks-based measures?," Applied Energy, Elsevier, vol. 132(C), pages 137-154.
    4. Ke Wang & Yujiao Xian & Chia-Yen Lee & Yi-Ming Wei & Zhimin Huang, 2019. "On selecting directions for directional distance functions in a non-parametric framework: a review," Annals of Operations Research, Springer, vol. 278(1), pages 43-76, July.
    5. Wang, Zhaohua & Feng, Chao, 2015. "A performance evaluation of the energy, environmental, and economic efficiency and productivity in China: An application of global data envelopment analysis," Applied Energy, Elsevier, vol. 147(C), pages 617-626.
    6. Yang, Zhenbing & Fan, Meiting & Shao, Shuai & Yang, Lili, 2017. "Does carbon intensity constraint policy improve industrial green production performance in China? A quasi-DID analysis," Energy Economics, Elsevier, vol. 68(C), pages 271-282.
    7. Chunbin Zhang & Rong Zhou & Jundong Hou & Mengtong Feng, 2022. "Spatial-Temporal Evolution and Convergence Characteristics of Agricultural Eco-Efficiency in China from a Low-Carbon Perspective," Sustainability, MDPI, vol. 14(24), pages 1-24, December.
    8. Gang Tian & Jian Shi & Licheng Sun & Xingle Long & Benhai Guo, 2017. "Dynamic changes in the energy–carbon performance of Chinese transportation sector: a meta-frontier non-radial directional distance function approach," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 89(2), pages 585-607, November.
    9. Ke Wang & Yujiao Xian & Yi-Ming Wei & Zhimin Huang, 2016. "Sources of carbon productivity change: A decomposition and disaggregation analysis based on global Luenberger productivity indicator and endogenous directional distance function," CEEP-BIT Working Papers 91, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    10. Xiangyu Hua & Haiping Lv & Xiangrong Jin, 2021. "Research on High-Quality Development Efficiency and Total Factor Productivity of Regional Economies in China," Sustainability, MDPI, vol. 13(15), pages 1-22, July.
    11. Kejia Chu & Ning Zhang & Zhongfei Chen, 2015. "The Efficiency and Its Determinants for China’s Medical Care System: Some Policy Implications for Northeast Asia," Sustainability, MDPI, vol. 7(10), pages 1-20, October.
    12. Huijun Li & Jianhua Zhang & Edward Osei & Mark Yu, 2018. "Sustainable Development of China’s Industrial Economy: An Empirical Study of the Period 2001–2011," Sustainability, MDPI, vol. 10(3), pages 1-18, March.
    13. Arabi, Behrouz & Munisamy, Susila & Emrouznejad, Ali, 2015. "A new slacks-based measure of Malmquist–Luenberger index in the presence of undesirable outputs," Omega, Elsevier, vol. 51(C), pages 29-37.
    14. D’Inverno, Giovanna & Carosi, Laura & Romano, Giulia & Guerrini, Andrea, 2018. "Water pollution in wastewater treatment plants: An efficiency analysis with undesirable output," European Journal of Operational Research, Elsevier, vol. 269(1), pages 24-34.
    15. Hang, Ye & Sun, Jiasen & Wang, Qunwei & Zhao, Zengyao & Wang, Yizhong, 2015. "Measuring energy inefficiency with undesirable outputs and technology heterogeneity in Chinese cities," Economic Modelling, Elsevier, vol. 49(C), pages 46-52.
    16. Zhou, P. & Ang, B.W. & Wang, H., 2012. "Energy and CO2 emission performance in electricity generation: A non-radial directional distance function approach," European Journal of Operational Research, Elsevier, vol. 221(3), pages 625-635.
    17. Sun, Jiasen & Yuan, Yang & Yang, Rui & Ji, Xiang & Wu, Jie, 2017. "Performance evaluation of Chinese port enterprises under significant environmental concerns: An extended DEA-based analysis," Transport Policy, Elsevier, vol. 60(C), pages 75-86.
    18. Zhang, Bin & Lu, Danting & He, Yan & Chiu, Yung-ho, 2018. "The efficiencies of resource-saving and environment: A case study based on Chinese cities," Energy, Elsevier, vol. 150(C), pages 493-507.
    19. Kounetas, Konstantinos & Zervopoulos, Panagiotis D., 2019. "A cross-country evaluation of environmental performance: Is there a convergence-divergence pattern in technology gaps?," European Journal of Operational Research, Elsevier, vol. 273(3), pages 1136-1148.
    20. Juan Du & Yongrui Duan & Jinghua Xu, 2019. "The infeasible problem of Malmquist–Luenberger index and its application on China’s environmental total factor productivity," Annals of Operations Research, Springer, vol. 278(1), pages 235-253, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:2:p:1123-:d:1027796. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.