Do Thermal Power Plants Have an AdverseImpact on Wheat Sown Area? EmpiricalEvidence from North China

The adverse effects of energy industry development on agriculture have not received adequate attention.The availability of groundwater plays a crucial role in agricultural production and energy generation, and its scarcity poses a substantial risk to the sustainability of food and energy supplies in the long run.This study utilizes a panel dataset from county-level agricultural production in North China from 2005 to 2016 to evaluate the impact of thermal power plants on wheat sown areas.The results reveal that the presence of an additional thermal power plant is associated with a 2.8% decline in wheat sown area.Furthermore, regions characterized by scarce surface water, high irrigation rates, or a high density of large-scale thermal power plants encounter more pronounced adverse consequences.Additionally, the mechanism test demonstrates that thermal power plants significantly reduce groundwater percentiles during the wheat growing season, resulting in a subsequent reduction in wheat sown area.This study not only highlights the critical competition for water resources but also provides empirical evidence on the negative externalities of the energy sector on agricultural sustainability.Our findings underscore the urgent need for integrated resource management strategies to mitigate the impacts of industrial water use on agriculture, ensuring the long-term viability of food and energy supplies in water-scarce regions.