Dual growth of green total factor productivity and greenhouse gas emission intensity of smallholder farms in China: Trends and misallocation

Abstract

Improving green production efficiency while reducing greenhouse gas (GHG) emissions is essential for China's sustainable agriculture. However, precise measurements of these two indicators at the household and crop levels and the mechanisms underlying their misallocation remain limited. Using two phases of first-hand tracked survey data from rural China (2000 households per phase) and applying the Life Cycle Assessment (LCA) method and Super-SBM model, we reveal that between 2018 and 2022, GHG emission intensity (GEI) and green total factor productivity (GTFP) increased by 12.2 % and 7.7 %, respectively. The rise in GEI was primarily driven by increased fertilizer use, while the improvement in GTFP was driven by yield-enhancing effects from higher input levels. Production factor misallocation was evident, particularly in land, capital, and other inputs, whereas labor misallocation was minimal. Achieving simultaneous reductions in GEI and improvements in GTFP require adjustments in crop planting structure and the level of production factor inputs.