Safeguarding Food Security While Reducing Agrochemical Use: Evidence From China's Digital Quota System

ABSTRACT

The global agricultural sector must balance escalating food demand with ecological sustainability. Objective risk aversion and the imperative to secure stable crop yields frequently drive the overuse of fertilizers and pesticides. This behavior creates a profound policy dilemma between environmental protection and agricultural output. This study investigates whether digital governance can balance this trade‐off. We examine Zhejiang Province's Digital Quota System for Fertilizers and Pesticides using provincial and county‐level data. Employing the Quantile Control Method and Synthetic Difference‐in‐Differences, we offer a rigorous causal evaluation. Our results indicate that the Digital Quota System for Fertilizers and Pesticides significantly reduces chemical inputs. In 2023, the system reduced fertilizer use by 63,300 tons and pesticide use by 8800 tons. The policy also achieved notable reductions in application intensity. Crucially, these environmental gains did not harm agricultural output. The digital intervention substantially reduced redundant pesticide use, known as input slack. Furthermore, heterogeneity analysis reveals that the policy yields more pronounced reductions in regions with advanced digital infrastructure, high‐input production systems, and staple grain‐dominated cultivation. These findings demonstrate that digital regulatory tools can precisely target behavioral inefficiencies. Digital governance promotes sustainable intensification and reduces chemical pollution without compromising national food security.