Work

Agricultural Subsidy Policies and Sustainable Development in China: The Effect of Agricultural Subsidies on Farmers' Chemical Fertilizer Application

Year: 2026

Type: article

Abstract: ABSTRACT Using 2013–2020 China Rural Microeconomic Data, we employ the staggered difference‐in‐differences method to examine the effects of agricultural subsidy reform on farmers' chemical fertilizer (CF) application intensity. We find that the reform significantly reduces CF application intensity: farmers in reformed provinces apply 14.2% less CF than those in non‐reformed provinces. The effect is more pronounced among elderly farmers, low education groups, high‐income groups, and agriculture‐dependent households. Three main channels underlie these effects: first, the provision of greater subsidy incentives to large‐scale farmers; second, the substitution of CF with agricultural machinery; and third, the promotion of organic fertilizer as a substitute for CF. Therefore, designing agricultural subsidy policies that target large‐scale farmers and incentivize green production practices may be an effective way to balance grain production with environmental protection.

Source: Agribusiness

DOI: 10.1002/agr.70172

Authors: Ping Xue, Wei Jia, Jian Zhang

Institutions: Peking University, Institute of Agricultural Economics and Development, Chinese Academy of Agricultural Sciences, Central University of Finance and Economics

Language: English

Topic: Agricultural Economics and Policy

Subfield: General Agricultural and Biological Sciences

Field: Agricultural and Biological Sciences

Domain: Life Sciences

SDGs: Zero hunger, Responsible consumption and production

Open Access status: bronze

Funders: China Postdoctoral Science Foundation, Agricultural Science and Technology Innovation Program