Adoption of Renewable Energy Technology on Farms for Sustainable and Efficient Production: Exploring the Role of Entrepreneurial Orientation, Farmer Perception and Government Policies

Abstract

Traditional energy consumption raises greenhouse gas emissions, which is a major concern in China. Agricultural energy consumption accounts for one third of China’s greenhouse gas emissions. Thus, current patterns of energy consumption on farms are both unsustainable and inadequate since rural communities in emerging nations have limited access to energy sources. This study explores the factors affecting the adoption of renewable energy on farms and examines the effect of such adoption on technical efficiency. The data were collected from 801 farmers selected through a multistage random and purposive sampling method in a face-to-face survey in China. Logistic regression, data envelopment analysis and propensity score matching were used to analyze the data. The descriptive statistics depicted that renewable energy technology was adopted by more than 25% of the total farmers. The logistic regression results depicted that education, farm size, government financial support, perceptions of renewable energy (usefulness, cost effectiveness, environmental friendliness and information availability) and farmer entrepreneurial orientation dimensions (risk-taking, innovativeness and pro-activeness) all significantly affected the adoption of renewable energy technology on farms. Farmers who perceived renewable energy as more useful and cost-effective than conventional energy technology were 1.89 and 2.13 times more likely to adopt it on their farms, respectively. Farmers who perceived renewable energy as more environmentally friendly than traditional energy technology were 1.54 times more likely to use it on their farms. The findings also showed that innovative farmers were 2.24 times more likely to adopt renewable energy technology on their farms. The propensity score matching results showed that the technical efficiency of adopters of renewable energy was 10% higher than that of nonadopters. The study suggests that agriculture must be transformed to fulfill the existing and forthcoming demand for food and energy in an impartial and ecologically sustainable manner.

Total-Factor Energy Efficiency and Its Driving Factors in China’s Agricultural Sector: An Empirical Analysis of the Regional Differences

“…It is assumed that the energy input is linearly homogeneous, and statistical error, v it , is introduced to Equation (3). Let LnD it = u it , and the basic form of the stochastic frontier function can be obtained as shown in Equation (5).…”

“…However, the high growth of China's agriculture largely relies on the large input of production factors such as fertilizers, pesticides, and energy, which are part of an extensive agricultural development model that mainly relies on energy consumption [3]. This not only leads to great waste of energy resources but also brings about pollution in air, soil, and groundwater [4][5][6]. Compared with the industrial sector, the energy utilization efficiency of the agricultural sector is usually low, and the energy consumption of agricultural activities has an important impact on global environmental conditions and climate conditions [7][8][9].…”

Assessing the economic and environmental impacts of renewable energy adoption across different global regions

“…These findings suggest that local government initiatives, supported by national policies and international frameworks, can significantly contribute to renewable energy adoption. Wang et al (2023) investigate the adoption of renewable energy technology on farms in China, highlighting the role of government policies, farmer perceptions, and entrepreneurial orientation in influencing adoption decisions. The study reveals that education, farm size, government financial support, and perceptions of renewable energy's usefulness and costeffectiveness significantly affect the adoption of renewable energy technology.…”

“…Government policies and international agreements play a crucial role in facilitating renewable energy adoption across different regions and sectors. The insights provided by Döme (2023), Hess andGentry (2019), andWang et al (2023) highlight the importance of strategic policy formulation, community engagement, and support mechanisms in promoting renewable energy. By leveraging these strategies, countries can accelerate their transition to renewable energy, contributing to global efforts to combat climate change and achieve sustainable development.…”

Evaluation of Green Development Level of Mianyang Agriculture, Based on the Entropy Weight Method

“…Using the SBM-DDF-Linebarger method to measure China's agricultural green total factor productivity (AGTFP) and agricultural labor surplus [33]. Logistic regression, data envelopment analysis and propensity score matching were used to analyze the data [34]. Taking into account the long-term importance of green water usage, carbon emissions, and fixed asset investment in agricultural output, an unanticipated dynamic SBM-DEA model was developed [35].…”