Environmental effects of improved seed variety subsidy policy
YI Hang1, GU Wei-yi1, SUN Jin-jie1, LIU Bei-bei1,2
1. State Key Laboratory of Pollution Control & Resource Reuse, School of Environment, Nanjing University, Nanjing 210023, China; 2. The Johns Hopkins University-Nanjing University Center for Chinese and American Studies, Nanjing 210093, China
Abstract：In this study, the wheat improved seed variety subsidy was taken as an example and the fertilizer application per unit area was used as a proxy variable to assess the environmental effects. Based on relevant agricultural data at the municipal level, a difference-in-differences model was constructed to quantify the changes in fertilizer application per unit area resulting from policy implementation. After that, the changes in planting costs, greenhouse gas emissions and social carbon costs due to changes in fertilizer application were estimated. The results showed that the policy had great environmental benefits, with the implementation of the policy resulting in a reduction of 5.9% in fertilizer application per unit area, a reduction of 139.42CNY/hm2 in planting costs, a reduction of 822.06kg CO2e/hm2 in greenhouse gas emissions and a reduction of 301.91CNY/hm2 in social carbon costs, fully compensating for the financial expenditure on the subsidy. The potential environmental impact should be taken into account in the development, improvement and extension of agricultural subsidy policies in the future, in order to enhance synergies between increased agricultural production and environmental benefits.
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