The role of climate-adaptive technological innovation in promoting agriculture carbon efficiency: impact and heterogeneity in economic development.

ABSTRACT

Achieving global climate change mitigation targets requires low-carbon production in agriculture. In such an endeavor, a new classification of climate-adaptive technology is defined to affect agriculture towards the low-carbon direction, but such an impact has seldom been empirically tested in the literature. In this paper, we investigate the impact of climate-adaptive technological innovation on agricultural carbon efficiency, a proxy for low-carbon agriculture. We use a stochastic directional distance function framework and a cross-country dataset covering 38 OECD countries. Additionally, we test the heterogeneous impact, considering that regional economic development is a crucial condition for deploying advanced technologies. The findings show that climate-adaptive technological innovation can promote carbon efficiency in agriculture, and this aggregate effect hides significant heterogeneity at different levels of economic development. The higher the economic development level is, the better climate-adaptive technological innovation contributes to improving agricultural carbon efficiency. Then, related policy implications are set forth.