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The Effect of Agriculture Insurance on Agricultural Carbon Emissions in China: The Mediation Role of Low-Carbon Technology Innovation

Author

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  • Shi-jie Jiang

    (School of Mathematics and Information Science, Guangzhou University, Guangzhou Higher Education Mega Center No. 230, Outer Ring West Road, Guangzhou 510006, China)

  • Lilin Wang

    (School of Economics and Finance, Southwestern University of Finance and Economics, Liutai Road No. 555, Chengdu 610074, China)

  • Feiyun Xiang

    (School of Mathematics and Information Science, Guangzhou University, Guangzhou Higher Education Mega Center No. 230, Outer Ring West Road, Guangzhou 510006, China)

Abstract

Global greenhouse gas emissions are increasing, with carbon dioxide being the most prominent. It is urgent to address and resolve the carbon emissions problem. This study investigates the mediating mechanism of agricultural insurance and low-carbon technology innovation on agricultural carbon emissions. We employed a two-way fixed effect panel model with data from 30 provinces in China from 2001–2019 to validate our hypotheses. The results demonstrate that (1) agricultural insurance can play an effective role in reducing agricultural carbon emissions, and (2) an indirect effect of agricultural insurance development on agricultural carbon emissions through low-carbon technology innovation exists. These results indicate that agricultural insurance could suppress agricultural carbon emissions indirectly through low-carbon technology innovation, thus preventing the acceleration of the greenhouse effect. This study further analyzed regional differences and discovered that the suppression effect of agricultural insurance on agricultural carbon emissions is more significant in the eastern regions and non-main grain-producing areas of China. Therefore, the analysis implies that promoting the development of agricultural insurance to encourage low-carbon technology innovation is crucial to accelerate the process of “carbon peak and neutrality”, especially for the eastern regions and non-main grain-producing areas of China.

Suggested Citation

  • Shi-jie Jiang & Lilin Wang & Feiyun Xiang, 2023. "The Effect of Agriculture Insurance on Agricultural Carbon Emissions in China: The Mediation Role of Low-Carbon Technology Innovation," Sustainability, MDPI, vol. 15(5), pages 1-20, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:5:p:4431-:d:1085160
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    2. Haiqiao Wang & Li Shang & Decai Tang & Zhijiang Li, 2024. "Research Themes, Evolution Trends, and Future Challenges in China’s Carbon Emission Studies," Sustainability, MDPI, vol. 16(5), pages 1-22, March.

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