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The Digital Fix: Overcoming Monitoring Constraints in Agricultural Environmental Regulation

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  • Kai Zhao
  • Chenyang Liu
  • Yu Zhang
  • Lu Fan
  • Lingyun Duan

Abstract

This study analyses the effects of environmental regulation and rural digitalisation on circular economy practices in agriculture, focusing on straw return to the field. We construct a theoretical model to explain how regulation drives farmers' behavioural change, accounting for spatial heterogeneity and the moderating role of digitalisation, and test the predictions using Chinese farm‐level survey data and text‐based measures of regulatory intensity. The results show that stricter regulation significantly promotes straw‐return adoption, with heterogeneous regional impacts, while digitalisation reduces these disparities. Beyond confirming the Porter and Pollution Haven Hypotheses in agriculture, the study highlights digitalisation as a novel policy lever that enhances regulatory effectiveness and mitigates regional disparities.

Suggested Citation

  • Kai Zhao & Chenyang Liu & Yu Zhang & Lu Fan & Lingyun Duan, 2026. "The Digital Fix: Overcoming Monitoring Constraints in Agricultural Environmental Regulation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 70(2), pages 438-456, April.
    • Handle: RePEc:bla:ajarec:v:70:y:2026:i:2:p:438-456
    DOI: 10.1111/1467-8489.70099
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