The Dual Effects of Environmental Regulation and Financial Support for Agriculture on Agricultural Green Development: Spatial Spillover Effects and Spatio-Temporal Heterogeneity

Abstract

Environmental regulation and financial support for agriculture are regarded as important means to promote agricultural green development. Based on provincial panel data of 31 provinces in China between the years 2000 and 2020, this paper explores the interactive effect, spatial spillover effect and spatio-temporal heterogeneity of environmental regulation and financial support for agriculture on agricultural green development. The empirical conclusions are as follows: (1) The level of agricultural green development increases year by year with a spatial characteristic of high in the east and low in the west. Moreover, there is a spatial spillover effect of agricultural green development with spatiotemporal heterogeneity. (2) Environmental regulation would not only reduce the level of local agricultural green development but also inhibit the adjacent regions, which is contrary to the impact of financial support for agriculture. (3) The interactive relationship of environmental regulation and financial support for agriculture has a spatial spillover effect on agricultural green development, which is more significant in the systematization stage of agricultural green development and most significant in the east-middle region.