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Promoting organic fertilizer use through subsidy incentives and knowledge dissemination

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  • Li, Jiangyi
  • Ding, Siyu
  • Chen, Jiajia

Abstract

This paper investigates whether agricultural technology extension (ATE), including both “subsidy incentives” and “knowledge dissemination”, can promote the adoption of organic fertilizer by farmers in China. Using the data from the China Household Finance Survey (CHFS) in 2017 and 2019 and employing a difference-in-differences estimation strategy based on propensity score matching (PSM-DID), we find that ATE can effectively promote the adoption of organic fertilizer through both channels, with the latter accounting for 37.4%. Specifically, providing subsidies in the early stages to alleviate the constraints of green factor inputs and disseminating agricultural knowledge continuously can make organic fertilizer rooted in agricultural production. Furthermore, this paper also discovers that ATE can expand the market scope of agricultural products by promoting the adoption of organic fertilizer, thereby increasing sales revenue and net agricultural income.

Suggested Citation

  • Li, Jiangyi & Ding, Siyu & Chen, Jiajia, 2026. "Promoting organic fertilizer use through subsidy incentives and knowledge dissemination," China Economic Review, Elsevier, vol. 96(C).
    • Handle: RePEc:eee:chieco:v:96:y:2026:i:c:s1043951x26000210
    DOI: 10.1016/j.chieco.2026.102671
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