Impact of Innovative Agricultural Green Technology Application on Agricultural Green Total Factor Productivity

Abstract

This study examines the impact of innovative agricultural green technology (AGTI) on agricultural green total factor productivity (GTFP) and the regulatory role of environmental regulation (ER). Using panel data from 30 Chinese provinces (2011-2022) and a two-way fixed effect model, it finds that AGTI significantly boosts GTFP, highlighting its positive role in sustainable agriculture. This suggests that adopting new green technologies can enhance agricultural efficiency and reduce environmental impact, crucial for long-term sector sustainability. However, further analysis shows that ER negatively affects the relationship between AGTI and GTFP. Strict regulations may add costs or constraints to new technology implementation, hindering productivity improvements. To ensure reliability, endogeneity was addressed using instrumental variables, and robustness was tested by varying model specifications and considering different industrial structures and regional heterogeneity. The core conclusions remained robust across models and samples. The study offers a new perspective on the economic effects of agricultural green technology and provides insights for policymakers. It emphasizes balancing ER intensity with AGTI promotion. A well-calibrated regulatory approach is needed to avoid over-restricting green technology adoption, which could limit agricultural productivity and sustainability gains.