The impact of green subsidies on farmers’ low-carbon production transition

Purpose The purpose of this paper is to test whether green subsidies, as an effective means of efficiently addressing positive production externalities, can effectively promote farmers’ low-carbon production transition. Design/methodology/approach Based on the microsurvey data of 498 hog farmers in Sichuan and Shandong provinces, this paper empirically analyzes the effects and mechanisms of green subsidies on farmers’ low-carbon production transition by constructing a counterfactual framework using an endogenous switching regression model. Findings First, green subsidies can promote low-carbon production transition of farmers. Second, there are group differences in the impact of green subsidies on farmers’ low-carbon production transition. Third, the mechanism test shows that the promotion effect of green subsidies on farmers’ low-carbon production transition points stems from the wealth effect, expectation effect and scale effect brought by green subsidies. Originality/value On the one hand, the current research on low-carbon production transition of farmers focuses on the single dimensions of factor input reduction, harmless waste treatment and resource utilization of manure. On the basis of relevant studies, this paper constructs a comprehensive index system from the three dimensions. On the other hand, this paper explores the mechanism and impact effect of green subsidies on farmers’ low-carbon production transition from both theoretical and empirical levels, so as to enrich the research content of green subsidies in animal husbandry.