How to promote the positive effect of agricultural digitalization on rural households' income under agricultural land transfer?

Purpose This study aims to clarify the mechanism by which agricultural digitalization (AD) boosts rural household income (RHI) in the context of agricultural land transfer (ALT) and explores countermeasures to strengthen this positive enabling effect. Design/methodology/approach First, a partial equilibrium model is established to systematically unpack the theoretical mechanism underlying the role of AD in increasing RHI under ALT. Second, the dynamic correlations between ALT and RHI are analyzed under two scenarios. An EF-ADL model is employed to test the proposed theoretical mechanism. Third, countermeasures are explored to enhance the increasing effect in terms of government intervention and innovation in ALT contracts. Findings AD exerts a multi-dimensional and synergistic enhancing effect on RHI via economies of scale, knowledge spillover, organizational effect, and efficiency improvement. A mutually reinforcing relationship exists between the ALT and AD. Without AD, ALT scale and RHI follow a convex function; with AD, the relationship shifts from concave to convex in phases. Secondary benefit ALT contract restructures incentives through benefit sharing and expands RHI's income channels. Government administrative intervention strengthens the effect by supporting contiguous transfers, advancing digital applications, and stabilizing land rents. Government subsidies rapidly activate the ALT market and boost income in short run. Originality/value Breaking the limitation that examines the income-enhancing effects of ALT and AD in isolation, an integrated analytical framework of AD–ALT–RHI is established. The phased nonlinear relationship between ALT and RHI with AD is identified. Going beyond verifying income-increasing mechanisms, countermeasures to strengthen the positive effect are further explored.