Cooperative membership and farmers’ environment-friendly practices: Evidence from Fujian, China

Abstract

This study investigates the relationship between Chinese farmers' propensity to adopt environment-friendly practices and their membership in cooperatives. Based on data collected in 2021 from the Fujian China Household Survey, the Endogenous Switching Probit model (ESP) is applied to account for unobserved factors that could simultaneously affect farmers' cooperative membership and their willingness to adopt environment-friendly practices. First, the results indicate that a cooperative membership has a positive impact on the level of farmers' interest in green production practices. Second, there is evidence of some heterogeneity (based on both observable and unobservable characteristics) in the impact of cooperative membership; the higher the farmers' capital returns, the more prominent the role of cooperatives in guiding these farmers. Third, participation in cooperatives is conducive to raising farmers' interest in green production. The overall conclusion is that a cooperative membership raises the Chinese farmers’ willingness to adopt environment-friendly practices.