Climate legislation and green agricultural production: impacts, transmission mechanisms and heterogeneities

Abstract

Purpose

This study examines the impact of climate legislation on green agricultural production and tests the heterogeneous impact of different types of climate legislation on agricultural green production.

Design/methodology/approach

In this study, the super-slacks-based measure (super-SBM) model is used to calculate agricultural green total factor productivity (AGTFP). The impact of climate legislation (including legislative acts and executive orders) on AGTFP is examined through regression analysis. The transmission mechanism of climate legislation affecting agricultural green production is further investigated.

Findings

This study shows that climate legislation has a positive long-term effect on AGTFP. It stimulates innovation in agricultural green technology but has a negative impact on resource allocation efficiency. Executive orders have a more significant effect on AGTFP than climate legislative acts. The effectiveness of climate legislation is more significant in countries with stronger legislation. Moreover, climate legislation reduces AGTFP in low-income countries while enhancing AGTFP in high-income countries. This effect is most prominent in upper-middle-income countries.

Originality/value

This study examines the different effects of various types of climate legislation, considering the level of economic development and the strength of the legal system on AGTFP. The findings can offer a global perspective and insights for China’s policymaking.

Citation

Feng, C. and Zhang, X. (2024), "Climate legislation and green agricultural production: impacts, transmission mechanisms and heterogeneities", China Agricultural Economic Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/CAER-03-2024-0072