Environmental regulations or expected revenue: What plays a more important role in China's green transition of agriculture?

Abstract

Policy constraints and market incentives have made it an important foundation for developing countries such as China to develop agricultural green transition policies. This study employed the panel data of 31 provinces in China from 2003 to 2022 and the three-dimensional framework of 'institutions, technology, and marketisation' to probe whether environmental regulation constraints or expected economic revenue incentives play a critical role in China's current agriculture development. Whether the green transition of agriculture depends on environmental regulatory policy constraints and expected economic revenue incentives is related to the level of agricultural technology development and market development. Technology and market play a positive role in the agricultural green transition by enabling the realisation of agricultural green production and the realisation of the agricultural green market.

Keywords

• green market realisation capability
• green production realisation capability
• green total factor productivity
• market failure