2. Literature Review
The definition of agricultural technology is a issue that needs to be discussed and clarified first. The theory of technological progress can be traced back to Adam Smith’s thought of division of labor promoting economic growth. Generally speaking, the definitions of agricultural technology can be divided into two: “narrow sense” and “broad sense”. Gong et al. (2020) [
3] describes narrow sense of agricultural technology as the natural science and technology used in agricultural production, such as mechanical technology, cultivation technology, biochemical technology and other substantive technologies. Wu (1996) [
4] stressed that these natural sciences and technologies must be applied in practice and become value-added technologies for agricultural products. On this basis, some scholars [
4] believe that not only the natural sciences are agricultural technology, but some social science such as management technology should also belong to the category of agricultural technology. For example, under the condition that the natural science used in agriculture remain unchanged, reasonable adjustment of labour force, factor inputs and agricultural structure will lead to agricultural economic benefits. Some scholars even expressed this view that high level of natural science and technology means nothing if there is no use of the social science and technology in agricultural. In other words, the natural science and social science used in agriculture should be considered jointly. After that, more scholars joined into the discussion of the definition of agricultural technology and found that not only the technologies directly used for agricultural development need to be included in the agricultural technology, but also the technologies indirectly used in agricultural development also need to be taken into account, such as communication technology, transportation facilities and meteorological information. Therefore, a broad sense of the definition of agricultural technology was proposed. Gong et al. (2020) [
3] describes the board sense of agricultural technology as the change in total agricultural output that cannot be explained by the change in the quantity of physical production factors (e.g., labour and capital) attributed to agricultural technology progress. Wu (1996) [
4] simply described the broad sense of agricultural technology as all agricultural technologies that lead to the improvement of agricultural production efficiency. Some scholars support the definition of agricultural technology progress in a narrow sense. This is because increasing agricultural research support will mainly lead to the growth of agricultural technology in the narrow sense, while social science such as management technology and other indirect technologies such as meteorological technology will not be significantly affected by the agricultural indicators. Some scholars support more on the definition of the board sense of agricultural technology. One of the main reasons is that the board sense of agricultural technology is theoretically easier to be measured. In short, after excluding the agricultural economic growth caused by labour force and agricultural production factor inputs, the remaining agricultural economic growth can be seen as the result of agricultural technology progress in a broad sense. Here is a extra point that needs to be mentioned. By definition all technologies used in agricultural activities but the estimated board sense agricultural technology progress refers to the agricultural production technologies. The technologies developed for other purposes, such as improving taste and food safety technologies are not taken into account in the for example Solow residual model [
1]. This kind of models cannot measure the level of technology developed for non-productive purposes.
Technological progress has a long research history. In the classical economic growth theory, for example Adam Smith proposed the theory of division of labour to promote economic growth in
The Wealth of Nations [
5]. One of the reasons why labour division can improve production efficiency is explained as the improvement of workers’ technical level. At this stage, scholars have recognized the importance of technological progress for economic growth, but they have not quantified and measured the technology progress. In neoclassical economic growth theory such as the Solow-Swan economic growth model [
6,
7], economic output is described as a Cobb-Douglas production function of technology progress, labour force and capital input. Then the technology progress can be measured by Solow residual model. Most of the methods of estimating the technology progress are developed from the Solow residual model and the estimation methods will be discussed later. In the endogenous growth theory [
8], technology is regarded as an endogenous factor and is affected by many factors such as labour and capital. For example, labour has direct effect on output and will also indirectly affect output through technology. In other words, the residuals estimated from the Solow residual model are the exogenous part of technology progress. For example, Liang (2005) [
1] found that there is a very high correlation between the estimated national technology progress and the estimated agricultural technology progress. So she believes that the agricultural technology progress should be affected by the national technology progress.
In the field of agricultural technology progress, there are many theories. The three most famous theories are the induction theory, the tread milling theory and the technology resource complementary theory. Induction theory believes that a breakthrough in a key agricultural technology will bring a series of technological innovations then agricultural technology progress will show a cyclical phenomenon [
9]. Tread milling theory shows that agricultural technology progress in one region will force neighboring regions to make technology progress [
4]. The technology resource complementary theory means that the route of technological progress in each region/country is complementary to the local resource situation. In other words, regional land quality, climate characteristics and other endowments determine the direction of agricultural technology development [
10]. These different theories will result in a slight difference in the measurement method of agricultural technological progress.
There are three main approaches to estimate the agricultural technology progress: total efficiency method, Solow residual method and composite index method.
The total efficiency method is relatively simple. The agricultural technology is assumed to linearly determines the total efficiency of agricultural production. The total efficiency of agricultural production can be measured by the ratio of total agricultural input to the total agricultural output. One of the advantages of the total efficiency method is that, since the total efficiency is a ratio, both the input and output can be the nominal values. The disadvantages are also quite clear. On one hand, the total efficiency of agricultural production perhaps is not a proportion of the agricultural technology progress. On the other hand, to transfer all inputs such as agricultural machinery and irrigation into monetary form is not quite easy.
Solow residual method is originally developed from the standard Solow economic growth model where the production process can be described by the Cobb-Douglas production function as Equation (
1) where
Y is total output;
A is the technology level;
K is capital;
L is labour; and
is coefficient.
For the purpose of estimating the time varying technology level, Equation (
1) can be represented as Equation (
2). In Equation (
2),
is the technology level in the base period;
e is used to show the continuous type growth rate;
t is time; and
is the average growth rate for each period of time. This standard method can be used to estimate the technology level for most of the production process including agricultural production process. Lots of the very famous economists develop their own approaches to estimate the technology level for different areas [
1]. The popularly accepted approach typically for the issue of agricultural technology progress is given by Equation (
3) where
is the amount of
i’s input and
is the coefficient for this input. Notice that, the sum of the coefficients is not necessarily equal to 1 (
). This equation is particularly useful for agricultural issue since, as we have discussed in the first approach, the total input of agricultural production is hard to be measured. In contrast, in Equation (
3), we can estimate the coefficient
by econometric models and all possible cost variables can be put into the regression. The third approach of estimating the agricultural technology progress is the
composite index method. This method is a pure statistical method. First of all, agricultural technology progress is theoretically decomposed into hierarchical components. For instance, the second hierarchy has three components: the directly used agricultural technology from natural science, the directly used agricultural technology from social science and the indirectly used agricultural technology. Then, for each second hierarchical components, a couple of indicators should be prepared. For instance, for directly used agricultural technology from natural science, the new crop varieties is a third component which can be approximated by the ratio of cultivated area of new and old crop varieties [
11]. Then use the weight calculated by analytic hierarchy process and the fuzzy evaluation method to estimate the composite index. In addition, there also have some other ways of estimating the agricultural technology progress such as the application of the stochastic frontier analysis (SFA) and data envelopment analysis (DEA) methods on the estimation but the theoretical supports of them are relatively weak [
12]. The three main approaches have some
weaknesses. The total efficiency method has an unrealistic assumption but lots of evidences suggest that the effect of technology progress on total efficiency should be diminishing returns. The Solow residual method cannot estimate the specific technology levels neither for each period of time nor for each region. This method can only estimate a general growth rate of technology. The composite index method has no economic background. There is no way to check whether the derived composite has the ability to represent the technology level or not.
According to the data in the 2020 World Energy Statistical Yearbook, China’s carbon emission ranked first among the 72 countries being counted, and the per capita carbon emission ranked 26th. According to estimates, China’s agricultural carbon dioxide emissions account for about 16% to 17% of the total [
13]. Therefore, China’s agricultural carbon emission is an issue that needs to be concentrated. A couple of points should be discussed. First, compared with other industries, agriculture not only emits carbon, but also neutralizes carbon [
14]. In other words, if agricultural carbon emissions increase, it does not mean that agriculture will damage the environment as a whole, so it is necessary to study agricultural carbon emission and carbon sink simultaneously [
15,
16]. Second, according to the definition, the carbon generated by human activities such as the use of pesticides and fertilizers in the agricultural production process is defined as the agricultural carbon emission [
17]. Third, there are two types of definitions for agriculture. Agriculture refers to the planting industry in a narrow sense; Agriculture in a broad sense mainly includes planting industry, animal husbandry, forestry and fishery. Because the carbon issues of the last three categories are hard to be measured, in this paper we will mainly focus on the planting industry. Fourth, the estimation methods of agricultural carbon emission are basically consistent with those of other industries, which are usually obtained through multiplying the amount of carbon source by the carbon emission coefficient [
18,
19,
20,
21]. Estimation methods and the carbon emission coefficients are also given by the IPCC where six related aspects are included: agricultural machinery power, cultivated area, agricultural film, fertilizer, pesticide and irrigation. Some argue that the first two aspects should be merged to be one source of agricultural carbon emission as the carbon emission from the use of the agricultural machineries [
22,
23]. The agricultural carbon sink coefficient of the Chinese agriculture is measured and analyzed by some Chinese scholars [
13,
21]. They provide a similar way to estimate the amount of agricultural carbon sink.
Although there are many studies on carbon sinks, the definition of carbon sink, especially agricultural carbon sink, is not clear. As far as we know, there is no consistent definition of agricultural carbon sink in textbooks and relevant academic papers. Inter-government Panel on Climate Change (IPCC) provided the definition of carbon sink as “any process, activity or mechanism which removes a greenhouse gas, an aerosol or a precursor of a greenhouse gas from the atmosphere (UNFCCC Article 1.8 (UNFCCC, 1992))” [
24]. Thus, agricultural carbon sink usually refers to the carbon fixed by crops from the atmosphere in agricultural industry. So simply speaking, all processes of converting carbon-containing gases (such as carbon dioxide and methane) into solid form should be the carbon sink. It is noteworthy that many ecological scholars only refer to crop soil carbon sinks as crop carbon sinks. This is because, ecological scholars usually use the carbon footprint—a method for studying the flow traces of carbon—of crops to explain and solve the carbon issues [
25]. For example, Fan et al. (2019) [
26] explained and measured the carbon footprint of crops by the three main components: grains, straw and below-ground residue. For crops, only soil carbon sink is stable for a long time. This is why many relevant studies only focus on agricultural soil carbon sink [
27] and only regard agricultural soil carbon sink as agricultural carbon sink. This view has not problems for forest land since the greenhouse gas absorbed by trees will exist in solid form for a long time. But for crops, with the use of grain, it will become greenhouse gas again in a very short time such as one or two years; the decay or burning of straw will also turn solid carbon into greenhouse gas. Only the carbon on the surface of soil will be as stable as the forest land for a long time [
28]. There are two implications for clarifying the definition and connotation of agricultural carbon sink. First, we should not think that forest land and grassland can be replaced by farm land because of the considerable carbon sink in the process of crop production [
29,
30]. As mentioned above, a large proportion of carbon sinks in crop production has been circulating, and only soil carbon sinks are stable. Second, although only agricultural soil carbon sink is stable, we should not consider agricultural soil carbon sink as the only carbon sink and merely focus on this [
31,
32]. With the improvement of the economy and the quality of life, the proportion of grain in agricultural products relative to other crops (such as cotton and fruit trees) is slowly declining, which will increase the agricultural steady-state carbon sink; With the improvement of agricultural technology, straw burning gradually disappears and straw is gradually used to make organic fertilizer to achieve the goal of replacing chemical fertilizer to reduce carbon emissions [
33]. We have reasons to believe that many external factors will directly and indirectly increase agricultural steady-state carbon sink. To sum up, it is appropriate to define agricultural carbon sink as the amount of gaseous carbon converted into solid carbon by crops through photosynthesis.
There are relatively few studies on the impact of agricultural technology progress on agricultural carbon emission or carbon sink, and their results are also inconsistent. Ismael et al. (2018) [
34] found evidences that the agricultural carbon emission is significantly affected by agricultural technology progress in Jordanian. Some studies found significant effect of agricultural technology progress on agricultural carbon emission in China [
35,
36]. However, Tian and Yin (2022) [
37] found that the effect of agricultural technology progress on carbon emission in China is statistically significant but practically tiny. So they suggest that government should strongly support the research of the agricultural technologies which have a great impact on reducing carbon emissions. Furthermore, some focused on the role of agricultural technology on the spatial effect of agricultural carbon emission [
38]. For example, He et al. (2022) [
39] found that the agricultural technology progress does not only reduce the local agricultural carbon emission but also reduce the agricultural carbon emissions of the surrounding regions.
Some gaps in this area still need to be focused further. First, most of the estimation methods can only measure the overall level of the agricultural technology progress but we hope to measure the data at each time points and regions. Second, in most of the studies on agricultural carbon emission, the issue of carbon sink is neglected. This research perspective is biased. Third, because the fundamental driving force of agricultural technology progress is to increase agricultural output, the roles of various agricultural technologies in agricultural carbon emissions and carbon sinks may be significantly different.
Therefore, this article is organized as follows. In
Section 3, some theoretical concepts are discussed which include the definition of agricultural technology, the estimation method of agricultural technology progress and the estimation methods of agricultural carbon emission and carbon sink.
Section 4 is the empirical section where the estimated values of agricultural technology progress, carbon emission and carbon sink are statistically analyzed first. Then the components of agricultural technology progress are checked. After that the effects of the agricultural technology progress as well as its components on agricultural carbon emission and carbon sink are explored through panel data regressions. At the end, conclusions, policy suggestions and limitations of this study is given in
Section 5 and
Section 6.