Financial Support for Agriculture, Chemical Fertilizer Use, and Carbon Emissions from Agricultural Production in China

Abstract

In the past 15 years, China has emitted the most carbon dioxide globally. The overuse of chemical fertilizer is an essential reason for agricultural carbon emissions. In recent years, China has paid more and more attention to financial support for agriculture. Therefore, understanding the relationship between chemical fertilizer use, financial support for agriculture, and agricultural carbon emissions will benefit sustainable agricultural production. To achieve the goal of our research, we selected the panel data of 30 provinces (cities) in China from 2000 to 2019 and employed a series of methods in this research. The results demonstrate that: the effect of chemical fertilizer consumption on agricultural carbon emissions is positive. Moreover, financial support for agriculture has a significantly positive impact on reducing carbon emissions from agricultural production. In addition, the results of causality tests testify to one-way causality from financial support for agriculture to carbon emissions from agricultural production, the bidirectional causal relationship between chemical fertilizer use and financial support for agriculture, and two-way causality between chemical fertilizer use and agricultural carbon emissions. Furthermore, the results of variance decomposition analysis represent that financial support for agriculture will significantly affect chemical fertilizer use and carbon emissions in the agricultural sector over the next decade. Finally, we provide several policy suggestions to promote low-carbon agricultural production based on the results of this study. The government should uphold the concept of sustainable agriculture, increase financial support for environmental-friendly agriculture, and encourage the research and use of cleaner agricultural production technologies and chemical fertilizer substitutes.

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