Work

New path for agricultural carbon governance: the emission reduction effect and mechanism of green finance

Year: 2026

Type: article

Abstract: Introduction Reducing agricultural carbon emissions is central to China’s carbon-neutrality goals, yet the effectiveness and operating mechanisms of green finance in supporting low-carbon agricultural production remain insufficiently understood. This study examines the effects, mechanisms, regional heterogeneity, and spatial spillovers of green finance on agricultural carbon emissions. Methods Using provincial panel data for China from 2007 to 2024, we estimated two-way fixed-effects and spatial Durbin models within the technology–organization–environment framework. We used mechanism, moderating-effect, robustness, and instrumental-variable analyses to examine transmission channels, contextual conditions, model sensitivity, and endogeneity. Results A one-unit increase in the green finance index corresponded to an approximately 19% reduction in agricultural carbon emissions. Green finance reduced emissions by promoting agricultural green technological innovation and strengthening agricultural socialized services, while digital infrastructure enhanced its carbon-reduction effect. The effect was stronger in major grain-producing regions and areas exposed to higher agricultural natural risks. Agricultural carbon emissions exhibited positive spatial dependence. Green finance produced a statistically significant local direct effect, but we found no robust evidence of cross-regional spillovers. Discussion Green finance supports agricultural decarbonization through locally embedded technological and organizational capacities. Policies should align green financial instruments with regional production functions and natural-risk conditions, strengthen digital infrastructure and agricultural service systems, and improve cross-regional coordination.

Source: Frontiers in Sustainable Food Systems

DOI: 10.3389/fsufs.2026.1888490

Authors: Yulong Zhao, Zhiling Liu, Peiyao Han, Yiming Zhang, Gujie Li

Institutions: Luoyang Institute of Science and Technology, Qinghai University, Henan University of Economic and Law

Language: English

Topic: Energy, Environment, Economic Growth

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Climate action, Zero hunger

Open Access status: gold

Estimated APC paid: $2,353