Preprint Article Version 1 This version is not peer-reviewed

Agricultural Subsidies, Production Certification and Green Pesticide Use Rate: Evidence from Experiments

Version 1 : Received: 25 February 2019 / Approved: 27 February 2019 / Online: 27 February 2019 (15:08:30 CET)

How to cite: Lin, N.; Zhang, Y.; Hu, X.; Liu, L.; Wu, C. Agricultural Subsidies, Production Certification and Green Pesticide Use Rate: Evidence from Experiments. Preprints 2019, 2019020259 (doi: 10.20944/preprints201902.0259.v1). Lin, N.; Zhang, Y.; Hu, X.; Liu, L.; Wu, C. Agricultural Subsidies, Production Certification and Green Pesticide Use Rate: Evidence from Experiments. Preprints 2019, 2019020259 (doi: 10.20944/preprints201902.0259.v1).

Abstract

This paper studies the impact of agricultural subsidies and product certification on the use rate of green pesticides based on experimental economics. We found that agricultural subsidies effectively increased the utilization rate of green pesticides. If the agricultural subsidies raised from 20% to 100%, the green pesticides’ using rate increased by 438.51%. We also found that product certification increased the utilization rate of green pesticides by 376.16%%.The increase of agricultural subsidies is more effective than the product certification. Under a higher proportion of agricultural subsidies, farmers’ behavior will maintain “status bias”. Therefore, there are three suggestions proposed. Firstly, because of high price of green pesticides and lower production, the subsidies for agricultural materials should raise greatly to effectively improve the utilization rate of green pesticides. It is recommended that green pesticide provided free of charge in some wealthy areas. Secondly, both subsidies and product certification can improve the use rate of green pesticides. However, since the effect of agricultural subsidies is better than product certification, and farmers may have status bias. Therefore, it is recommended to give priority to the substantial increase on the proportion of agricultural subsidies, and then to product certification.

Subject Areas

Green pesticides; Agricultural subsidies; Product certification; Laboratory experiment

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