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Exploring the role of digital inclusive finance in agricultural carbon emissions reduction in China: Insights from a two-way fixed-effects model

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Digital inclusive finance can help to achieve agricultural carbon reduction through effective resource allocation, financial innovation, and digital networks. This study empirically tested the role of digital inclusive finance in agricultural carbon emissions reduction using a two-way fixed-effects model that was based on panel data of 30 provinces from 2011 to 2019 in China. The data and statistics showed that China's total agricultural carbon emissions were still growing and had not yet reached their peak. This empirical study found that digital inclusive finance had a significant effect on the reduction in agricultural carbon emissions. Specifically, for every one-level increase in the digital financial inclusion development (DFII) level, the province's total agricultural carbon emissions (TACC), agricultural greenhouse gas carbon emissions (ACGC), and agricultural carbon source carbon emissions (ACSC) decreased by 0.31, 0.38, and 0.25%, respectively, but there was no significant decrease in agricultural energy use carbon emissions (ACEC)1. Furthermore, the first- and second-order lagged terms of digital inclusive finance still had significant agricultural carbon reduction effects, reducing TACC by 0.30 and 0.29%, respectively. To better utilize the agricultural carbon emissions reduction effect of digital inclusive finance, we should further support the development of digital inclusive finance; promote education on, and the breadth and depth of digital inclusive finance; encourage cooperation between digital inclusive finance and low-carbon enterprises to reduce the financing constraints of agricultural low-carbon enterprises; and stimulate the R&D and sales of low-carbon technologies.

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  • Cite Count Icon 1
  • 10.1051/e3sconf/202344102023
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  • Jul 11, 2022
  • Environmental Science and Pollution Research
  • Jianxin Chang

As a vast agricultural country that emits a high level of agricultural carbon, China faces significant pressure to reduce its agricultural emissions. In recent years, digital finance has become a crucial part of China's financial system and has reshaped China's mode of green finance. Based on the 2011 to 2020 panel data of 31 provinces in China, this study discusses the effect and mechanisms of digital finance on agricultural carbon emissions. A two-way fixed effect model, threshold effect model, mediating effect model, and moderating effect model have been adopted to investigate the nexus of digital finance and agricultural carbon emissions. The results show that: (1) digital finance can reduce agricultural carbon emissions, and this effect is nonlinear, with two thresholds. (2) A reduction of agricultural carbon emissions through digital finance can be realized via digital finance's impact on farmers' entrepreneurship and agricultural technology innovation. (3) Urbanization has a positive moderating effect on digital finance's agricultural carbon emissions reduction effect. Based on the above conclusions, specific recommendations are proposed with regard to digital finance reducing agricultural carbon emissions.

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  • Research Article
  • Cite Count Icon 9
  • 10.3389/fsufs.2024.1336877
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  • Mar 15, 2024
  • Frontiers in Sustainable Food Systems
  • Ye Li + 1 more

IntroductionReducing carbon emissions from agriculture is essential to ensuring food security and human prosperity. As a country with approximately 20% of the global population, China has begun actively practicing the low-carbon agricultural development conception. Against the backdrop of disruptive technologies that continue to be integrated into various industries, the massive application of agricultural robots has opened the way to intelligent agriculture. This paper tries to answer whether there is some non-linear nexus between the application of agricultural robots and agricultural carbon emissions in China. As an essential tool for carbon emission reduction in China, does environmental regulation moderate the nexus between agricultural robot applications and agricultural carbon emissions? If so, how does this effect manifest itself?MethodsThis work takes China as an example by collecting macro-regional panel data from 30 provinces from 2006 to 2019. The environmental Kuznets curve theory is extended to agricultural carbon emissions, and we carried out empirical tests utilizing the panel fixed effects model and the moderating effects model.ResultsThis study verifies the inverted U-shaped nexus between agricultural robotics applications and agricultural carbon emissions in Chinese provinces, i.e., the agricultural carbon emissions (ACE)-Kuznets curve holds. The higher the level of formal environmental regulation, the larger the peak of the ACE-Kuznets curve and the more the inflection point is pushed back. The higher the level of informal environmental regulation, the lower the peak of the ACE-Kuznets curve and the later the inflection point.DiscussionThe findings in this paper represent the first exploration of the environmental Kuznets curve in agricultural carbon emissions. It is noteworthy that the moderating effect of formal environmental regulation does not lower the peak of the curve as we expect. This appearance is attributed to the reality that China is still in a phase of rising agricultural carbon emissions, which is exacerbated by the overlapping positive effects of agricultural robotics applications and formal environmental regulations. Informal environmental regulation is more effective than formal environmental regulation in reducing agricultural carbon emissions at this stage.

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  • Nov 28, 2024
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  • Tianshu Quan + 3 more

Research has found that the transfer of agricultural land in China has to some extent led to agricultural carbon emissions. Therefore, it is urgent to systematically analyze the reasons for carbon emissions caused by agricultural land transfer, find ways to mitigate the increase in agricultural carbon emissions, and achieve low-carbon and sustainable development of agriculture. This article analyzes the relationship between agricultural land transfer, rural human capital, and agricultural carbon emissions in 30 sample provinces in China based on property rights incentives and scale operation theory, using the system GMM model, adjustment model, and threshold model. The results indicate that the transfer of agricultural land has, to some extent, intensified agricultural carbon emissions, with an increase of 0.003 units per unit of agricultural land transfer intensity. Rural human capital has mitigated the carbon emissions resulting from agricultural land transfer and played a corrective role. Under varying levels of rural human capital, there exists a dual threshold effect on the impact of agricultural land transfer on carbon emission intensity, exhibiting a pattern of ‘ineffectiveness-promotion-inhibition’. The analysis of regional heterogeneity reveals significant differences in the relationship between agricultural land transfer and carbon emissions between major grain-producing areas and non-grain-producing areas. It is worth noting that in the northern region, the transfer of agricultural land exacerbates carbon emissions, whereas in the southern region, higher levels of rural human capital effectively curb the growth of carbon emissions. Furthermore, the impact of agricultural land transfer on carbon emissions is not confined to specific regions, indicating that its environmental consequences transcend administrative boundaries and spread geographically, displaying distinct time-dependent characteristics.

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