How does off-farm work affect chemical fertilizer application? Evidence from China’s mountainous and plain areas

Abstract There is a rising concern that the ongoing wave of off-farm employment will have profound effects on agriculture-based environment problems-measured by the intensity of chemical fertilizer (CF) usage. Yet, our understanding of the regional heterogeneities of this effect remains scant. This research gap is addressed by using panel data of selected cities in Sichuan and Henan provinces in China, which are representative mountainous and plain regions respectively, to empirically examine the impact of off-farm employment on CF use. Our findings indicated that there exists an inverted “U” shaped relationship between off-farm employment and CF use in the mountainous region, whereas CF use is positively correlated with off-farm employment in the plain area. The increased CF inputs, which resulted from the substitution effect and remittance effect, can compensate for the negative effect of labor loss, while land marginalization is the main reason for the decrease in CF consumption at the later stage of urbanization in the mountainous region. Meanwhile, the deagriculturalization of farmers’ employment patterns decreases the intensity of CF usage, which resulted from the scale effect produced by land transfer and large-scale management in the plain region. Besides, the evolution pattern of this effect may present a similar trend in these provinces, but the turning point of plain regions would appear later than that of mountainous areas due to the inherently unique physical conditions and socio-ecological contexts. Based on the empirical results of this paper, some policy recommendations are provided.