Impact of technical progress and fiscal support to agriculture on agricultural carbon emissions

Reducing agricultural carbon emissions (ACEs) is essential to China’s overall carbon-emission-reduction target and agricultural sustainable development. This paper analyzes the impact of agricultural technology progress (ATP) and financial support for agriculture on ACEs from a theoretical level, and empirically tests the effect of ATP on ACEs by spatial econometric model, using China’s provincial data from 2001 to 2019. The regulatory effect model is used to examine the moderating effect of financial support policies on ATP and ACEs. The sample was divided according to natural geographical environment, economic development level and agricultural production structure to study the regional heterogeneity from the spatial perspective. The main conclusions are as follows: Overall, ATP has an inhibitory effect on ACEs, and this effect has a spatial spillover effect. In terms of regulation effect, fiscal support for agriculture policy has an enhanced regulatory effect in the impact of ATP on reducing ACEs. In addition, there is obvious regional heterogeneity in the carbon emission reduction effect of ATP in the west or east of the Hu Huanyong line, western or non-western, major or non-major grain-producing regions. This paper draws the following policy implications: First, increase agricultural technology research and development and expand technology spillover channels; second, establish regional collaborative emissions reduction mechanisms and strengthen regional technical cooperation; third, improve the financial support system for agriculture; Fourth, implement regional heterogeneous agricultural policies in accordance with local conditions.