The Impact Of Environmental Regulation On Agricultural Green Development

Under the background of economic changing,aiming to take developing turning to the high quality,the word of green becomes an indispensable standard.Due to the economic reform,our country’s agriculture experienced a long period of extensive developing mode,agricultural production caused a heavy burden for the environment,particularly its pollution emissions made surface water suffered from the rapid deterioration.Hence,aiming to realize the green agriculture and inhabit the water deteriorating,the central government has enacted a great variety of environmental policy to request local governments to put their focus entirely on emissions and environment.However,due to lacking of information,the central government mainly depends on "two standards" in the state-controlled water reading reported by water quality stations to judge whether local governments finish emission reduction tasks.Also,water quality monitoring stations lack of the function that they could not observe downstream region so the water quality in the downstream area cannot be observed by the monitor.Hence,making the quality of surface water of downstream better is not contained in the contract content the local government and central government had signed.The local government might make water monitor stations near the county agricultural pollution emissions were discriminatory,namely implement more strict regulations for upstream area,but the downstream area is not the same rigorous regulations.Hence,this phenomenon provides an ideal experimental design for my research,and a causal inference analysis framework could be used to identify the effect of environmental regulation on the agriculture.My paper depends on the County Statistical Yearbook from 2000 to 2019 to analyses the effect of environmental regulation.Firstly,based on three basic theories,which are tournament,information asymmetry and contract,we proposed hypotheses inferred through the logic and literature about environmental regulation and agricultural green development.Secondly,after calculates key variables and sets discontinued regression model,my paper infers the baseline estimator given by the hypothesis whether regulation will reduce the agricultural green total factor productivity on upstream counties near the station,and adopts various methods to test the robustness of the baseline estimator.Then,we analyse the channel basing on“following cost” and “innovation compensation”.Finally,the heterogeneity test was depended on the basis of the water quality readings of monitoring stations,the agricultural scale of counties,and the station’s gradient to estimate the structural effect of environmental regulation.The empirical results show that:(1)environmental regulation reduce agricultural green total factor productivity about 26.3 to 32.2percent;(2)The regulation is mainly to inhibit agricultural green total factor productivity by increasing the extra “non-product” cost which labor and capital investment have a significant growth but their productivity have approximately reduced 28 percent and 33 percent,however;after the "the new normal era",agricultural green total factor productivity,compared to the past,had grown 18%meanwhile the NH3-N emission level decease about 37%;therefore,it mean the regulation begin show its positive effect;(3)Only water pollutants requested by the central government will drive the effect of environmental regulation,and also environmental regulations have a tendency that focus on counties with large agricultural scale which would burden more loss than others,in addition,the stations gradient will influence the effect come from the regulation as the gradient might disturb the precision of water monitoring process.In conclusion,there are some suggestions:(1)Make a comprehensible water supervision system,aiming to reduce the discrimination happened when the local government were implementing environmental regulations;(2)The government should try to support the research and development of agricultural green production technology because it could make a positive effect of environmental regulation on agricultural green development;(3)The government should put more focus on the structural effect of environmental regulations to reduce the possibility of the unfair distribution of resources happened.The possible contributions of my paper are as follows: Firstly,from the research perspective,my paper finds when they were implementing the environmental regulation policy,leading to an enormous spatial inequality between the upstream and downstream counties in agricultural production,and we show the impact of regulation,enriching the relevant research on the field of agricultural green development.Secondly,from the empirical method,my paper uses the inconsistency of regulatory standards near water stations and adopts the discontinued regression model to calculate the effect of environmental regulation different treatment on agricultural green development near the station’s upstream and downstream counties,and it is helpful for us to totally learn about the relationship between them.Thirdly,from the research content,my paper depends on 148 national water quality stations as the entry point,and finds the regulation effect hidden in agricultural green total factor productivity given by the different regulation implemented on the upstream and downstream counties,and it could provide a framework for regulation design in the future.