Digital economy empowers sustainable agriculture: Implications for farmers' adoption of ecological agricultural technologies

Adopting ecological agricultural technologies (EATs) is an effective way to guarantee food security and protect the environment. With the advancement of the digital village strategy, the continuous integration of the digital economy with the rural economy has gradually become an emerging driving force for sustainable agriculture. However, few studies have examined the impact of farmers' participation in the digital economy in different links of the agricultural industry chain on EATs adoption from a micro perspective. Using data from 2,825 grain farmers from the 2020 China Rural Revitalization Survey, this paper applies the treatment effect model and the mediating effect model to empirically analyze the impact and mechanism of participation in the digital economy on farmers' EATs adoption from an ecological effect perspective. This paper characterizes farmers' participation in the digital economy in terms of digital production, digital sales, and digital finance. The results show that participation in the digital economy significantly promotes farmers' EATs adoption. The sub-dimensional test found that participation in digital production, digital sales, and digital finance significantly promotes farmers' EATs adoption. The above findings remain robust after a series of robustness tests, such as changing the estimation method and replacing the dependent variable. Mechanism analysis shows that participation in the digital economy, especially digital sales and digital finance, could promote farmers' EATs adoption by increasing the demand for agricultural machinery services, improving information availability, and enhancing food safety cognition; participation in the digital production could promote farmers' EATs adoption by increasing the demand for agricultural machinery services. Results of heterogeneity analysis show that the promotion effect of participation in the digital economy on EATs adoption is more substantial among farmers with higher digital literacy and larger cultivated land scales. The findings of this paper provide insights for China and other countries to effectively use digital technology to promote sustainable agriculture under the pressure of achieving sustainable development goals.