Public Investment and Environmental Sustainability of Agricultural Production in China

Abstract

The excessive application of fertilizer and pesticides in grain production in China has posed a threat to the environmental sustainability of agricultural production. One of the major reasons of the increasing usage of chemical inputs by farmers is their trying to reach higher yields, especially In absence of adequate public inputs, such as development and extension of appropriate technology and necessary production infrastructure, etc. Based on the crop-specific data of the past 20 years, this paper examines how the public Investments in agricultural researches could impact on the reduction of farmers' private material inputs of major grain crops in China. It manifests that the increased investments in public sector, especially in agricultural researches, is a favorable and effective way to reduce farmers' private material inputs and should be given a priority consideration in the policy emendation to increase yields and improve production sustainability.