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The Farm-Level Economic and Environmental Benefits of Precision Agriculture Technology Adoption: A Meta-Analysis of Global Evidence

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  • Jingwen Lan

    (School of Law and Economics, Guangxi Minzu University, Nanning 530006, China)

  • Qi Ban

    (School of Finance, Nankai University, Tianjin 300350, China)

Abstract

Precision agriculture technologies are widely recognized as a key pathway to achieving agricultural sustainable intensification. However, empirical research on their farm-level economic benefits and environmental gains has yielded inconclusive and hotly debated results. This study employs a meta-analysis to systematically integrate 85 empirical studies from around the world, comprising 1472 independent farm observations. This approach aims to quantify the average effects of precision agriculture technologies (PATs) and explore the sources of heterogeneity. The results indicate that: (1) Overall, the adoption of precision agriculture technologies generates significant economic benefits, increasing the average return on investment by 22.3% and net profit by 18.5%; (2) Environmentally, technology adoption significantly improves nitrogen use efficiency (average increase of 15.1%), reduces pesticide application (average reduction of 12.8%), and decreases greenhouse gas emissions (average reduction of 9.4%); (3) Moderating effect analysis reveals that technology type, farm size, region, and development level are key factors causing effect heterogeneity. Variable rate technology and auto-guidance systems show the most pronounced benefits in large-scale grain farms, whereas benefits are relatively weaker and less stable in small-scale farms and developing countries. The findings of this study emphasize that the realization of precision agriculture’s benefits is highly context-dependent. Therefore, policy formulation and technology promotion should abandon the “one-size-fits-all” model and adopt differentiated strategies. These strategies should focus on lowering application barriers for smallholders and developing low-cost, locally adapted technical solutions. This approach is essential to maximize the sustainability potential of the technologies.

Suggested Citation

  • Jingwen Lan & Qi Ban, 2025. "The Farm-Level Economic and Environmental Benefits of Precision Agriculture Technology Adoption: A Meta-Analysis of Global Evidence," Sustainability, MDPI, vol. 17(24), pages 1-23, December.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:24:p:11223-:d:1818303
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