Can agricultural trade openness facilitate agricultural carbon reduction? Evidence from Chinese provincial data

Abstract

Being one of the significant conduits linking international and domestic markets, agricultural trade is an area of study that commands attention. While it may bring about transnational carbon emission transfers, it begs the question: does it promote carbon reduction in a country's agricultural sector? Such an inquiry holds profound implications for optimizing agricultural trade and promoting low-carbon agricultural advancement. Utilizing two-way fixed effect model, mediating effect model and dual-fixed spatial Durbin model, this paper examines the impact effects, mechanisms and spatial characteristics of agricultural trade openness (ATO) on agricultural carbon reduction using panel data from Chinese provinces spanning 2000 to 2021. The main findings include: (1) ATO markedly and positively influences the reduction of agricultural carbon emissions (ACE), this conclusion maintains its validity under endogeneity treatment and robustness tests. (2) ATO contributes to reducing ACE through three intermediary channels: scale effect, technological effect, and structural effect. (3) From a spatial perspective, a notable positive spatial spillover effect is observed from agricultural trade openness to agricultural carbon reduction, with the spatial carbon reduction effect being more apparent. (4) The spatial carbon reduction effect of agricultural trade liberalization exhibits heterogeneity across different natural geographical locations and levels of ATO. The study confirms the vital role of ATO in promoting agricultural carbon reduction in typical countries, underscoring the urgency and importance of bolstering cross-border agricultural trade cooperation and domestic agricultural product circulation in the domain of climate change.