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Green finance reform and application intensity of chemical fertilizer and pesticide: policy evidence from China.
The environmental hazards resulting from the excessive application of pesticides and fertilizers have been an inevitable agricultural production issue in various countries around the world. New technologies and policies are constantly trying to improve their application efficiency. This paper utilizes panel data of the provincial level in China from 2009 to 2019 to empirically study the effect of green finance reform policies on the chemical fertilizer application intensity (FAI) and pesticide application intensity (PAI). Standard difference-in-differences (DID), synthetic DID, difference-in-difference-in differences (DDD), and spatial DID models are constructed for specific empirical analysis. The findings can be concluded as follows: (1) A unit of the green finance reform policy reduces FAI by 0.0144 and PAI by 1.7921 by promoting green technology innovation. (2) Government financial extractive capacity hinders the reduction effect of green finance on PAI. (3) Coastal geographical location is conducive to reducing PAI through green finance reform. (4) FAI and PAI show positive spatial autocorrelations, and the influence of green finance reform overflows to surrounding areas. The research results can provide policy references for countries around the world to promote the green development of agriculture and reduce environmental pollution.
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