Experimental Design
In collaboration with the provincial government, a major agricultural technology company, and a large chain retailer with more than 200 branches in the province, we propose a novel randomized field experiment targeting farms of mandarin orange --- the most important cash crop in the region. Our approach includes subsidizing the installation of natural enemy products (i.e., predatory mites) for farmers, as well as implementing a cross-randomization of low-pesticide-residue certification, which will help farmers secure higher procurement prices from the retailer.
With the help of the provincial government, we have obtained administrative dataset that includes a comprehensive list of mandarin orange producers across approximately 400 villages. This dataset provides detailed information on each farmer, including the owner's background and contact information, the location of the farm plot, the area of each plot, and the type of orange orchards. The dataset covers a total of 16,869 orange farmers who manage 117,595 mu of land, with an average of 7 mu per farmer dedicated to orchard cultivation.
To determine the origin of pesticide overuse, we will conduct a baseline survey to document basic facts about the beliefs of farmers regarding pesticide, risk preference, time preference, and the self-predicted optimal levels of pesticide use. We will also collect information on the market sources of pesticides, different pesticide varieties, and the prices and stock data of local pesticide traders.
Building on this foundation, we will randomly select 3,800 farmers. These selected farmers will be evenly divided into three treatment groups and one control group. We break down the design down below.
• Supply Treatment: This group will receive supply-side technical support. In partnership with the agricultural technology company, we will offer free installation of predatory mites and comprehensive training to all participating farmers.
• Demand Treatment: This group will receive demand-side economic incentives. Simultaneously, a large-chain supermarket company will commit to purchasing the farmers' uncontaminated and certified agricultural products at a premium above the standard market rate. This pricing strategy provides a direct financial incentive for farmers to adopt this environmentally friendly pest control technology.
• Supply + Demand Treatment: This group will receive both supply-side technical support and demand-side economic incentives. In partnership with the agricultural technology company, we will offer free installation of predatory mites and comprehensive training to all participating farmers. Simultaneously, a large-chain supermarket company will commit to purchasing the farmers' uncontaminated and certified agricultural products at a premium above the standard market rate. This pricing strategy provides a direct financial incentive for farmers to adopt this environmentally friendly pest control technology.
• Control Group: This group will not receive any interventions and will serve as the baseline for comparison to assess the impact of the various interventions on the adoption of green pest control technologies. Control farmers will be selected from both villages with and without any treatment farmers, which will allow us to identify information spillovers.