Ground‐Level Ozone and Agricultural Productivity in China

Using a county‐level dataset covering agricultural total factor productivity (TFP), crop yields, weather and ground‐level air pollution from 2003 to 2015, this study investigates the effects of air pollution, specifically ozone (O3), on agricultural TFP. We find that O3 pollution is strongly associated with productivity losses, with each one‐standard‐deviation increase in O3 linked to a 33% reduction in TFP, far exceeding the negative impacts of other pollutants and temperature extremes. These adverse effects are primarily driven by declines in labour productivity, land productivity and crop yields and are further exacerbated by extreme temperatures. Between 2003 and 2015, agricultural TFP losses due to rising O3 pollution grew from 9.8% to 46.6%. As an adaptive response, farmers adjust production practices, particularly by increasing fertiliser use, to mitigate productivity losses. Our findings highlight the urgent need for integrated policies that address both air pollution and climate extremes to promote agricultural sustainability.