3.1. Double-Difference Modeling
Program assessment, implementation assessment, and effect assessment are three important links in the policy evaluation process. First, program assessment is the process of comparing and evaluating different policy options. Through this process, the best implementation program can be identified to provide a basis for the smooth implementation of the policy. Second, implementation assessment is key to ensuring the policy is implemented. By assessing whether the policy and process implementation meet the design requirements, problems can be identified, and adjustments can be made promptly to ensure the effective implementation of the policy. Finally, effect assessment is the evaluation of the degree of impact of the policy. Quantitatively analyzing the impact of the policy can provide decision-making references for policymakers; it can also improve and perfect the policy.
While the multi-period double-difference model is a powerful tool for causal inference, it has some limitations. First, the model requires that the treatment effect be stable, i.e., that the effect of the treatment on the outcome is consistent across time points. Second, it relies on the parallel trend assumption, i.e., in the absence of treatment, the trends of outcomes in the treatment and control groups should be parallel. In addition, the multiperiod double-difference model may be affected by time-invariant omitted variables, which may lead to biased estimates if they affect both treatment assignment and outcomes. Finally, the model may have difficulty dealing with dynamic treatment effects, i.e., treatment effects that vary over time.
In this study, the multi-period double-difference (multi-period DID) method is used to study the effect of the agricultural support protection subsidy policy, mainly because of the time difference in the implementation of the agricultural support protection subsidy policy in different provinces, which is piloted by some provinces first, and then gradually covered all the provinces in the country. Therefore, this method can estimate the policy effect more accurately. In this study, the multi-period DID is combined with the policy implementation time characteristics. Traditional DID assumes that all individuals in the treatment group begin to experience policy shocks at the same time. Multi-period DID is used in cases where individuals in the treatment group do not receive the treatment at the same time. The model constructed for multi-period DID is as follows:
In the equation,
is a constant term,
is an individual fixed-effects variable,
is a time fixed-effects variable,
denotes the core dummy variable, and
is the control variable in the model. In the model,
is used to represent the time points in the treatment group that changed according to the individual i. The average treatment effect due to the policy can be obtained from the model constructed by the multi-period DID. Based on the model constructed by the multi-period DID, the average treatment effect brought by the policy can be obtained:
In the process of model utilization, the interaction term is usually replaced by
, which represents the dummy variable for individual i’s treatment in time t. Then, the constructed model can be written as follows:
Similarly, the average treatment effect of the model can be expressed as follows:
In the above multi-period DID model, denotes food security, which is mainly analyzed through quantitative and qualitative security dimensions. In terms of quantitative security, “grain output (10,000 tonnes)” is used as a measure. In terms of qualitative security, “pesticide application (10,000 tonnes), fertilizer in terms of quality security, “pesticide application (10,000 tonnes), and chemical fertilizer use (10,000 tonnes)” are used. The core explanatory variable in the model is whether the agricultural support protection subsidy policy is implemented, represented by in the model and takes the value of 1 if the agricultural support protection subsidy policy has been implemented in region i at time t; otherwise, it takes the value of 0. in the model represents the other control variables, including commonly used cropland area, per capita net income of rural residents, rural electricity consumption, total power of agricultural machinery, effective irrigated area, regional primary industry GDP (gross domestic product), and the number of agricultural lands in region i. The model also includes the number of agricultural lands in Region II, which is represented by in the model. Irrigated area, regional primary industry gross product, and the number of employees in regional primary industry. Time-fixed and city-fixed effects are also controlled in the model.
The impact mechanism is further analyzed to clarify how the agricultural support and protection subsidy policy achieves a “win-win” situation in terms of food production and quality. Agricultural specialization has been gradually applied to food production and management, and promoting agricultural machinery power is an important manifestation of agricultural specialization [
29]. Implementing an agricultural support and protection subsidy policy in China is conducive to developing agricultural scale, intensification, and mechanization, which is conducive to accelerating the transformation of agricultural development. The development of agricultural scale, intensification, and mechanization will guarantee increasing food production and quality. Many agricultural demands for inputs will inevitably accompany agricultural support and protection subsidy policies. With the increase in inputs, the demand for agricultural science and technology will be promoted, and progress in agricultural technology will also be developed. Combined with the endogenous growth theory, endogenous technological progress is the power source of economic growth, and the progress of the level of agricultural technology is the power source of guaranteeing food security, especially driving the growth of food production (Wang et al., 2019) [
30]. The previous analysis showed that the use of agricultural machinery improves the efficiency of food production, promotes the growth of food production, and improves the efficiency of pesticide and fertilizer use, leading to the use of fewer pesticides and fertilizers that can achieve better results, thus improving food quality. Therefore, the mechanism variable considered here is agricultural mechanized production, and the selected index is “the total power of agricultural machinery.” The mediation effect analysis method is used to explore the mediation effect of agricultural mechanized production in agricultural support and protection subsidy policy affecting food security. Finally, the model results are analyzed to further improve the research on the effect of agricultural support protection subsidy policy.
The mediator variable considers the level of local scientific and technological development and is measured by the total power of agricultural machinery. “Total power of agricultural machinery” is chosen as an indicator of agricultural mechanized production to explore whether the agricultural support protection subsidy policy can promote food security by enhancing the development of agricultural mechanization. In this paper, we refer to the methodology of previous researchers [
31,
32] and construct the mechanism analysis model as follows:
In the above model,
is the total power of agricultural machinery, i.e., one of the mediating variables in this study, and the other variables are consistent with the meaning of the variables in the above double-difference model. Equation (5) represents the impact of the support and protection subsidy policy on food production, Equation (6) represents the impact of the support and protection subsidy policy on the total power of agricultural machinery, i.e., the impact of the policy on the mediator variable, and Equation (7) represents the impact of the support and protection subsidy policy and the mediator variable on the food production together. Fertilizer use and pesticide application are used as explanatory variables to test whether the use of total power of farm machinery will reduce the use of fertilizer and pesticides. The constructed model is as follows:
The baseline regression results of the double-difference model verified that the coefficients of the core explanatory variables in Equations (5) and (8) are significant and greater than 0, indicating that the food support and protection policies help to increase food production and reduce pesticide and fertilizer use. Moreover, whether and in Equations (6), (7) and (9) are significant or not needs to be verified. If they are both significant, then we will see whether is significant; if either of and is not significant, it is necessary to implement the Sobel test.
3.2. Variable Selection and Data Description
3.2.1. Explained Variables
At the level of food production security, the explanatory variable is the amount of food production. Grain production is one of the most important aspects of China’s food security, representing the production capacity of food, which is an important indicator of national food security. It reflects the food output capacity that can be successfully achieved domestically within a certain period, certain technical conditions, and inputs of production factors, specifically reflected in the total annual food production. At the food quality and safety level, the explanatory variables are pesticide and chemical fertilizer use. Using pesticides and chemical fertilizers pollutes the environment and harms human health. Agricultural fertilizer application is the amount of fertilizer used in agricultural production during the year, including nitrogen, phosphorus, potash, and compound fertilizer. Pesticide use refers to using chemicals and biological drugs that regulate plant growth, which can affect grain quality. Therefore, this paper considers pesticide and fertilizer usage as explanatory variables to carry out the analysis from the perspective of food quality and safety.
3.2.2. Core Explanatory Variable
This paper takes the implementation of agricultural expenditure protection subsidy policy as the core explanatory variable. Due to the DID model adopted in this study, which refers to Callaway et al. (2021) for a multi-period DID analysis approach [
33], the agricultural support protection subsidy policy is an important policy shock, and this variable is a dummy variable that takes the value of 1 if the policy is implemented, and 0 otherwise, it is denoted by
, which is the key variable of interest, where the coefficient of the variable is reflected by the estimation of the double-difference. The coefficient can portray the changes in local food production and fertilizer use after implementing the agricultural support protection subsidy policy, thus reflecting the effect of the policy.
3.2.3. Mechanism Variable
The mechanism variable is the level of rural scientific and technological development, expressed in terms of the total power of agricultural machinery. Specifically, it is a comprehensive indicator of the power of various agricultural machinery calculated according to power. In recent years, the digital, networked, and intelligent transformation of the agricultural industry has accelerated. Smart agriculture has begun to take effect, and the level of intelligence has gradually improved. China’s smart technology agricultural infrastructure is perfect, and the popularization of Chinese agricultural science and technology has gradually increased. The level of agricultural science and technology has an inextricable relationship with food development, and thus, this paper takes it as a mechanism variable to explore the mechanism played by the level of rural technology development.
3.2.4. Control Variables
Rural arable land situation refers to land used for agricultural production, including paddy fields, dry land, garden land, etc., and land used to grow crops, such as rice, wheat, corn, etc., to ensure the production and supply of food, which is expressed by the area of common arable land. It also includes the situation of farmers’ income, which is expressed as the per capita net income of rural residents, irrigation and electricity consumption, i.e., effective irrigated area and actual rural electricity consumption, and economic development and employment, i.e., agricultural GDP and the number of people involved in agricultural production.
in the model is the key variable of interest. The coefficient of this variable corresponds to the estimated quantity in double-differencing. The coefficient can portray the changes in local food production and fertilizer use after implementing the agricultural support and protection subsidy policy as a response to the effect of the agricultural support and protection subsidy policy. In this study, all the variables involved are defined, as shown in
Table 1.
3.3. Data Sources
The data in this paper come from the official websites of provincial and municipal statistical and agricultural bureaus, specifically the China Rural Statistical Yearbook, China Statistical Yearbook, China Grain Yearbook, and EPS (Express Professional Superior) Three Rural Databases, etc. The period is from 2007 to 2020, and the data includes prefecture-level cities in 31 provinces except Hong Kong, Macao, and Taiwan. Indicators collected include the area of commonly cultivated land, grain output, sown area of grain crops, per capita net income of rural residents, rural electricity consumption, the total power of agricultural machinery, effective irrigated area, the gross domestic product of the primary industry, number of employees in the primary industry of the region, amount of pesticide application, fertilizer usage, and so on. Prefectural cities with huge missing value data and the varieties of grain cultivation that do not involve the three major staple grains were removed. Finally, 298 prefecture-level city data research samples were identified. The descriptive statistical analysis of relevant variables is shown in
Table 2.
The descriptive statistics table shows differences in grain production in different regions; the maximum value is 17,350,200 tonnes, the minimum value is 0.21, the average value is 2,007,200 tonnes, and the standard deviation is 207.11. There are also differences in the amount of fertilizers used in the grain production.
Table 2 shows that the maximum value reached 1,218,800 tonnes, the minimum value was 0.04 million tonnes, the average value was 180,100 tonnes, and the standard deviation was 1,801,000 tonnes. Differences in food production and food development in different regions, both in scale and structure, can also be observed.