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Assessing the relationship between air pollution, agricultural insurance, and agricultural green total factor productivity: evidence from China

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Abstract

As a favorite means to promote the development of green agriculture, agricultural insurance can not only encourage farmers to adopt green production technology and improve production efficiency, but also achieve the purpose of reducing the input of chemicals to protect the environment. This article aims to study the dynamic relationship between agricultural insurance, air pollution, and agricultural green total factor productivity using the panel vector auto-regressive method (PVAR) and panel data of 30 provinces in China from 2005 to 2018. The empirical results show that there is a significant cross-sectional dependence and the co-integration relationship between agricultural insurance, air pollution, and agricultural green total factor productivity. The increase in agricultural insurance can improve agricultural green total factor productivity and aggravate air pollution to a certain extent. However, serious air pollution does not improve agricultural green total factor productivity. Panel Granger causality test results show that agricultural insurance has a one-way causal relationship with green total factor productivity and air pollution, and so does air pollution with agricultural green total factor productivity. In addition, impulse response results show that increasing agricultural insurance or reducing air pollution can improve agricultural green total factor productivity. These conclusions have long-term practical implications for both agricultural policymakers and environmental managers.

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Funding

This study was supported in part by the National Social Science Foundation of China with ratification number 21BGL022, 20CMZ037.

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Authors and Affiliations

  1. College of Economics, Sichuan Agricultural University, Chengdu, 611130, China

    Houjian Li, Mengqian Tang, Andi Cao & Lili Guo

Authors
  1. Houjian Li
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  2. Mengqian Tang
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  3. Andi Cao
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  4. Lili Guo
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Contributions

Houjian Li: conceptualization, methodology, writing—original draft preparation, reviewing, and editing. Mengqian Tang: methodology, writing—original draft preparation, reviewing, and editing. Andi Cao: methodology, writing—reviewing and editing. Lili Guo: supervision, investigation, data collection, methodology, software, reviewing, and editing. All authors read and approved the final manuscript.

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Correspondence to Lili Guo.

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The experimental protocol was established according to the ethical guidelines of the Helsinki Declaration and was approved by the Human Ethics Committee of Sichuan Agricultural University. Written informed consent was obtained from individual or guardian participants.

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The work described has not been published before (except in the form of an abstract or as part of a published lecture, review, or thesis); it is not under consideration for publication elsewhere; its publication has been approved by all co-authors, if any; its publication has been approved (tacitly or explicitly) by the responsible authorities at the institution where the work is carried out.

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Li, H., Tang, M., Cao, A. et al. Assessing the relationship between air pollution, agricultural insurance, and agricultural green total factor productivity: evidence from China. Environ Sci Pollut Res 29, 78381–78395 (2022). https://doi.org/10.1007/s11356-022-21287-7

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