Exploring the nonlinear association between agri-environmental regulation and green growth: The mediating effect of agricultural production methods

• Published in: Journal of cleaner production 2024-03, Vol.444, p.141138, Article 141138
• Main Authors: Zhu, Hongbing, Yang, Lihua, Xu, Changxin, Fu, Tianbo, Lin, Jianting
• Format: Article
• Language: English
• Subjects: Environmental regulation in agriculture; Green growth; Innovation in production methods; Nonlinear threshold effect
• ISSN: 0959-6526
• DOI: 10.1016/j.jclepro.2024.141138

Environmental regulations are crucial for addressing pollution and achieving green development. However, the role of agri-environmental regulations in promoting green agriculture is understudied. Using Chinese data (1999–2020) and a nonlinear panel threshold model, this paper explores their relationship. We measure the intensity of agri-environmental regulation by the difference in the real and theoretical polluting input consumption and compute agri-green growth by adjusting agricultural output using the cost of agricultural carbon emissions. Results reveal a two-stage impact of regulations on green growth in agriculture. At lower intensity, negative effects are observed, but beyond the threshold, positive impacts emerge. Evidence suggests the mechanism involves the nonlinear influence of agri-environmental regulations on agricultural production methods. We also find that negative impacts reverse faster, and positive impacts are more significant in major grain-producing regions and areas with high state-owned arable land. This study therefore suggests that the government subsidizes farmers at the initial stage of regulation to reduce the environmental costs borne by farmers to motivate them to adopt environmentally friendly production methods for agricultural sustainable green development. •We propoase a PLSR-based agri-environmental regulation measure and examine it'simpact on agriculture's green growth.•The panel threshold model is employed to find the economic threshold of effective agri-environmental regulation.•It exhibits a cost-benefit effect in the initial phase and an innovative compensation effect in the high-intensity phase.•Innovation in the agricultural production method is the underlying mechanism, accounting for 23.184% of the total effect.