Geographical indications and fertilizer reduction

Abstract Geographical indications (GI) identify products whose quality and reputation are linked to a specific geographical origin and have been widely adopted worldwide. In many countries, GI production standards include explicit requirements for fertilizer use, suggesting that GI may contribute to fertilizer reduction. However, evidence remains limited on whether GI implementation affects fertilizer use intensity at the farm level. Using household-level panel data from 1,517 farmers in China’s Rural Fixed Observation Points survey from 2009 to 2021, this study applies a staggered difference-in-differences (DID) approach to examine the effect of GI implementation on fertilizer use intensity and its potential mechanisms. The results show that GI implementation significantly reduces fertilizer use intensity. Compared with farmers in non-GI areas, those located in GI areas reduce fertilizer application by an average of 124.635 kg per hectare, representing a decline of approximately 11.5%. Mechanism analysis further indicates that price incentives and collective action may serve as two potential channels underlying this reduction. We also find heterogeneity in the effects across different groups of farmers. These findings provide policy implications for promoting green agricultural production through GI implementation and offer practical insights for local governments, industry associations, cooperatives, and other stakeholders seeking to encourage environmentally sustainable farming practices.