Reducing fertilizer and pesticide application through mandatory agri-environmental regulation: Insights from “Two Zero” policy in China

Abstract

As the intensive application of fertilizers and pesticides (FAP) seriously affects human health and the ecological environment, how to reduce them becomes the key to sustainable agricultural development. Using Chinese crop-level data from 1991 to 2022, this study examines how mandatory agri-environmental regulation reduces FAP application by using “Two Zero” policy (TZP) as an example. The key findings are as follows: First, the implementation of TZP reduced FAP application by 37.2 % and 23.6 %. Second, there are differences in the mechanisms by which TZP achieves FAP reductions. Improvement in technical efficiency is the main means of pesticide reduction. While fertilizer reduction depends on both technical efficiency improvements and the reduction of the proportion of cash crops. Third, there was significant crop, regional, and crop distribution heterogeneity in the effects of TZP. The FAP reduction effect of TZP is more pronounced in cash crops than in grain crops. Pesticide reduction is more significant in the Yangtze River region and South China, but less so in Southwest China. The fertilizer reduction effect is more evident in the Huang-Huai-Hai region, South China, and Southwest China, but is diminished in Northeast China. Additionally, the pesticide reduction effect is particularly pronounced in major grain-producing regions. Finally, TZP has also reduced the intensity of FAP application. The findings offer important insights for China to further reduce FAP application. They also offer guidance for developing similar agri-environmental regulations in other countries.