Agricultural Ecological Efficiency under the Carbon Emissions Trading System in China: A Spatial Difference-in-Difference Approach

Abstract

The agriculture sector plays a significant role in the development of the national economy and providing raw materials to the industrial sector. Trying to get more agricultural productivity, most farmers ignored the adverse effects of agricultural chemicals or pesticides that have a negative impact on the environment. So, the importance of agricultural ecological efficiency needs to be understood. This study attempts to explore whether agriculture, as an important source of carbon dioxide production, can have an effective impact on the agricultural ecological efficiency of carbon trading pilot policies in the context of the global implementation of carbon trading. This study evaluated the agricultural ecological efficiency (AEE) and its spatial distribution characteristics of 31 provinces in China, the data period was from 2000 to 2018. By applying the spatial difference-in-difference (SDID) approach, the study investigates the effects of low-carbon policies on agricultural ecological efficiency in pilot areas. The results demonstrate that low-carbon trading pilot policies have a significant impact on agricultural ecological efficiency. At the same time, the effects of regional economic development, population growth, urbanization, and urban innovation on efficiency are also significant. The improvement of agricultural ecological efficiency requires not only the full implementation of low-carbon trading pilot policies but also the development of regional economy and high-quality agriculture. The findings provide further policy recommendations for high-quality agricultural development.