Agric. Econ. - Czech, X:X | DOI: 10.17221/467/2024-AGRICECON

Impact of formal and informal environmental regulations on agricultural carbon emissions: Empirical evidence from ChinaOriginal Paper

Yumiao Zhang, Qi Yin, Yufan Wu, Kun Ma
School of Economics and Management, Hebei University of Science and Technology, Shijiazhuang, P.R. China

Agricultural carbon emissions (ACE) is a critical contributor to global greenhouse gas emissions, which have already become a common challenge for global carbon reduction. As a major agricultural producer and largest carbon emitter, China has made great efforts to reduce ACE. Using the panel data of 30 provinces in China from 2011 to 2022, this study explores the heterogeneous impacts of formal environmental regulations (FER) and informal environmental regulations (IER) on ACE. The results reveal that both FER and IER have significant effect on reducing ACE, with FER showing a more pronounced effect. The mechanism analysis indicates that agricultural technological innovation and planting structure adjustment play important mediating roles in this impact mechanism. The effect of FER is more remarkable in major grain producing areas than in non-major grain producing areas, while the effect of IER is completely opposite. Compared with coastal regions, both FER and IER have significant inhibitory effect on ACE in inland regions. Additionally, the marketisation level may reinforce the inhibitory effect of both FER and IER on ACE. Based on the empirical results, this study suggests to strengthen the synergistic effect of FER and IER, promote agricultural technology innovation, and formulate targeted policies according to regional differences.

Keywords: carbon emissions reduction; environmental policy; mediating effect model; threshold model

Received: December 5, 2024; Revised: June 4, 2025; Accepted: September 15, 2025; Prepublished online: January 14, 2026 

Download citation

References

  1. Åby B.A., Kantanen J., Aass L. Meuwissen T. (2014): Current status of livestock production in the Nordic countries and future challenges with a changing climate and human population growth. Acta Agriculturae Scandinavica, Section A - Animal Science, 64: 73-97. Go to original source...
  2. Aday B., Ertekin C., Evrendilek F. (2016): Emissions of greenhouse gases from diesel consumption in agricultural production of Turkey. European Journal of Sustainable Development, 5: 279-288. Go to original source...
  3. An C., He X., Zhang L. (2023): The coordinated impacts of agricultural insurance and digital financial inclusion on agricultural output: Evidence from China. Heliyon, 9: e13546. Go to original source... Go to PubMed...
  4. Balogh J.M. (2020): The role of agriculture in climate change: A global perspective. International Journal of Energy Economics and Policy, 10: 401-408. Go to original source...
  5. Balsalobre-Lorente D., Driha O.M., Bekun F.V., Osundina O.A. (2019): Do agricultural activities induce carbon emissions? The BRICS experience. Environmental Science and Pollution Research, 26: 25218-25234. Go to original source... Go to PubMed...
  6. Baron R.M., Kenny D.A. (1986): The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51: 1173-1182. Go to original source... Go to PubMed...
  7. Blackman A., Li Z., Liu A.A. (2018): Efficacy of command-and-control and market-based environmental regulation in developing countries. Annual Review of Resource Economics, 10: 381-404. Go to original source...
  8. Campi M., Dueñas M., Fagiolo G. (2021): Specialization in food production affects global food security and food systems sustainability. World Development, 141: 105411. Go to original source...
  9. Carpentier C., Suret J.M. (2015): Stock market and deterrence effect: A mid-run analysis of major environmental and non-environmental accidents. Journal of Environmental Economics and Management, 71: 1-18. Go to original source...
  10. Chen X., Chen Y.E., Chang C.P. (2019): The effects of environmental regulation and industrial structure on carbon dioxide emission: A non-linear investigation. Environmental Science and Pollution Research, 26: 30252-30267. Go to original source... Go to PubMed...
  11. Chen L., Li W., Yuan K., Zhang X. (2021): Can informal environmental regulation promote industrial structure upgrading? Evidence from China. Applied Economics, 54: 2161-2180. Go to original source...
  12. Cheng Z., Li L., Liu J. (2017): The emissions reduction effect and technical progress effect of environmental regulation policy tools. Journal of Cleaner Production, 149: 191-205. Go to original source...
  13. Cole M. A., Elliott R. J., Shimamoto K. (2005): Industrial characteristics, environmental regulations and air pollution: An analysis of the UK manufacturing sector. Journal of environmental economics and management, 50: 121-143. Go to original source...
  14. Di Maria C., Lange I., Van der Werf E. (2014): Should we be worried about the green paradox? Announcement effects of the Acid Rain Program. European Economic Review, 69: 143-162. Go to original source...
  15. Dong X., Zhong Y., Liu M., Xiao W., Qin C. (2022): Research on the impacts of dual environmental regulation on regional carbon emissions under the goal of carbon neutrality. Frontiers in Environmental Science, 10: 993833. Go to original source...
  16. Du Y., Liu H., Huang H., Li X. (2023): The carbon emission reduction effect of agricultural policy - Evidence from China. Journal of Cleaner Production, 406: 137005. Go to original source...
  17. Dumortier J., Elobeid A. (2021): Effects of a carbon tax in the United States on agricultural markets and carbon emissions from land-use change. Land Use Policy, 103: 105320. Go to original source...
  18. Fan G., Wang X.L., Ma G.R. (2011): (The contribution of marketization to of China's economic growth). China Economist, 7: 4-14. (in Chinese)
  19. Fan W., Gao Z., Chen N., Wei H., Xu Z., Lu N., Wang X., Zhang P., Ren J., Ulgiati S., Dong X. (2018): It is worth pondering whether a carbon tax is suitable for China's agricultural-related sectors. Energies, 11: 2296. Go to original source...
  20. Farajian L., Moghaddasi R., Hosseini S. (2018): Agricultural energy demand modeling in Iran: Approaching to a more sustainable situation. Energy Reports, 4: 260-265. Go to original source...
  21. Gao Y., Li Z., Hong S., Yu L., Li S., Wei J., Chang J., Zhang Y., Zhang W., Yuan W., Wang X. (2025): Recent stabilization of agricultural non-CO2 greenhouse gas emissions in China. National Science Review, 12: nwaf040. Go to original source...
  22. Hansen B.E. (1999): Threshold effects in non-dynamic panels: Estimation, testing, and inference. Journal of Econometrics, 93: 345-368. Go to original source...
  23. Hepburn C. (2010): Environmental policy, government, and the market. Oxford Review of Economic Policy, 26: 117-136. Go to original source...
  24. Holka M., Kowalska J., Jakubowska M. (2022): Reducing carbon footprint of agriculture - Can organic farming help to mitigate climate change? Agriculture, 12: 1383. Go to original source...
  25. Hu Y., Zhang K., Hu N., Wu L. (2023): (Review on measurement of agricultural carbon emission in China). Chinese Journal of Eco-Agriculture, 31: 163-176. (in Chinese)
  26. Jaffe A.B., Peterson S.R., Portney P.R., Stavins R.N. (1995): Environmental regulation and the competitiveness of US manufacturing: What does the evidence tell us? Journal of Economic Literature, 33: 132-163.
  27. Jaffe A.B., Newell R.G., Stavins R.N. (2002): Environmental policy and technological change. Environmental and Resource Economics, 22: 41-70. Go to original source...
  28. Kathuria V. (2006): Controlling water pollution in developing and transition countries - Lessons from three successful cases. Journal of Environmental Management, 78: 405-426. Go to original source... Go to PubMed...
  29. Kong G., Kong D., Wang M. (2020): Does media attention affect firms' environmental protection efforts? Evidence From China. The Singapore Economic Review, 65: 577-600. Go to original source...
  30. Li R., Ramanathan R. (2018): Exploring the relationships between different types of environmental regulations and environmental performance: Evidence from China. Journal of Cleaner Production, 196: 1329-1340. Go to original source...
  31. Li Y., Shi Y. (2022): Dynamic game analysis of enterprise green technology innovation under double environmental regulation. International Journal of Environmental Research and Public Health, 19: 11047. Go to original source... Go to PubMed...
  32. Li C., Hwang Y., Yu C. (2022a): Research on the relationship between environmental regulation, technological innovation and employment: Focused on China. Journal of International Logistics and Trade, 21: 2-17. Go to original source...
  33. Li J., Wang W., Li M., Li Q., Liu Z., Chen W., Wang Y. (2022b): Impact of land management scale on the carbon emissions of the planting industry in China. Land, 11: 816. Go to original source...
  34. Li L., Han J., Zhu Y. (2023): Does environmental regulation in the form of resource agglomeration decrease agricultural carbon emissions? Quasi-natural experimental on high-standard farmland construction policy. Journal of Cleaner Production, 420: 138342. Go to original source...
  35. Lu J., Dai L. (2023): Examining the threshold effect of environmental regulation: the impact of agricultural product trade openness on agricultural carbon emissions. Sustainability, 15: 10048. Go to original source...
  36. Lu W., Wu H., Yang S., Tu Y.P. (2022): Effect of environmental regulation policy synergy on carbon emissions in China under consideration of the mediating role of industrial structure. Journal of Environmental Management, 322: 116053. Go to original source... Go to PubMed...
  37. Peng J., Xie R., Ma C., Fu Y. (2021): Market-based environmental regulation and total factor productivity: Evidence from Chinese enterprises. Economic Modelling, 95: 394-407. Go to original source...
  38. Porter M.E., van der Linde C. (1995): Toward a new conception of the environment-competitiveness relationship. Journal of Economic Perspectives, 9: 97-118. Go to original source...
  39. Pu L., Chen X., Lu C., Jiang L., Ma B., Yang X. (2021): Spatial-temporal characteristics of agricultural greenhouse gases emissions of the main stream area of the Yellow River Basin in Gansu, China. Atmosphere, 12: 1296. Go to original source...
  40. Rehman A., Ma H., Ozturk I., Ahmad M. I. (2022): Examining the carbon emissions and climate impacts on main agricultural crops production and land use: updated evidence from Pakistan. Environmental Science and Pollution Research, 29: 868-882. Go to original source... Go to PubMed...
  41. Rymaniak Ł., Merkisz J., Szymlet N., Kamińska M., Weymann S. (2021). Use of emission indicators related to CO2 emissions in the ecological assessment of an agricultural tractor. Eksploatacja i Niezawodno¶ć, 23: 605-611. Go to original source...
  42. Schader C., Stolze M., Gattinger A. (2011): Environmental performance of organic farming. In: Boye J.I., Arcand Y. (eds.): Green Technologies in Food Production and Processing. New York, Springer New York: 183-210. Go to original source...
  43. Song W., Han X. (2022): Heterogeneous two-sided effects of different types of environmental regulations on carbon productivity in China. Science of the Total Environment, 841: 156769. Go to original source... Go to PubMed...
  44. Song Y., Huang H., Li Y., Xia J. (2024): Towards inclusive green growth in China: Synergistic roles and mechanisms of new infrastructure construction. Journal of Environmental Management, 353: 120281. Go to original source... Go to PubMed...
  45. Streimikiene D., Kyriakopoulos G.L., Lekavicius V., Siksnelyte-Butkiene I. (2021): Energy poverty and low carbon just energy transition: Comparative study in Lithuania and Greece. Social indicators Research, 158: 319-371. Go to original source... Go to PubMed...
  46. Tang Y., Liu M., Xia F., Zhang B. (2023): Informal regulation by nongovernmental organizations enhances corporate compliance: Evidence from a nationwide randomized controlled trial in China. Journal of Policy Analysis and Management, 43: 234-257. Go to original source...
  47. Tao A.X. (2012): The relationship between low-carbon agriculture and agricultural science and technology based on gray relational theory. Asian Agricultural Research, 4: 5-7.
  48. Tian Y., Feng C. (2022): The internal-structural effects of different types of environmental regulations on China's green total-factor productivity. Energy Economics, 113: 106246. Go to original source...
  49. Wang K.L., Zhao B., Ding L.L., Miao Z. (2021): Government intervention, market development, and pollution emission efficiency: Evidence from China. The Science of the Total Environment, 757: 143738. Go to original source... Go to PubMed...
  50. Wang H., Guo J. (2024): Research on the impact mechanism of multiple environmental regulations on carbon emissions under the perspective of carbon peaking pressure: A case study of China's coastal regions. Ocean & Coastal Management, 249: 106985. Go to original source...
  51. Wen S., Hu Y., Liu H. (2022): Measurement and spatial-temporal characteristics of agricultural carbon emission in China: An internal structural perspective. Agriculture, 12: 1749. Go to original source...
  52. Xia Y., Guo H., Xu S., Pan C. (2024): Environmental regulations and agricultural carbon emissions efficiency: Evidence from rural China. Heliyon, 10: e25677. Go to original source... Go to PubMed...
  53. Xie H., Huang Y. (2021): Influencing factors of farmers' adoption of pro-environmental agricultural technologies in China: Meta-analysis. Land Use Policy, 109: 105622. Go to original source...
  54. Xue Y., Li C.H., Li J.W., Lyu H., Lai Q.Y., Kang Z.L., Yao P., Li J.H. (2024): (Analysis of spatial and temporal characteristics and drivers of agricultural carbon emissions in China). Chinese Journal of Eco-Agriculture, 32: 1805-1817. (in Chinese)
  55. Yu Y., Jiang T., Li S., Li X., Gao D. (2020): Energy-related CO2 emissions and structural emissions' reduction in China's agriculture: An input-output perspective. Journal of Cleaner Production, 276: 124169. Go to original source...
  56. Zhang W., Li G., Uddin M.K., Guo S. (2020): Environmental regulation, foreign investment behavior, and carbon emissions for 30 provinces in China. Journal of Cleaner Production, 248: 119208. Go to original source...
  57. Zhou X., Zhang Y. (2024): Administration or marketization: Environmental regulation, marketization and agricultural green total factor productivity. Journal of Environmental Management, 370: 122433. Go to original source... Go to PubMed...
  58. Zhu S., Li Y., Wang S., Liu J., Cui J., Yamaka W. (2024): The double-edged sword effect of agricultural technological progress on agricultural carbon emissions: Empirical evidence from China. Frontiers in Sustainable Food Systems, 8: 1489448. Go to original source...

This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International (CC BY NC 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.