Industrial water pollution and farmer adaptation: Evidence from rice farming in Jiangsu, China

Abstract The shift of industrial water pollution from urban to rural areas during industrialization can impact agricultural production and stimulate farmers’ adaptive behavior. As an illustration, this study examines the impact of industrial water pollution from manufacturing firms on rice production in Jiangsu, China. By combining data from the China Rural Fixed Point Survey with the China Environmental Statistics Database, we employ an extended translog production function to distinguish between the effects of industrial water pollution and farmers’ adaptation behaviors. Our results demonstrate that industrial chemical oxygen demand (COD) has a direct biological effect on paddy rice growth, reducing rice yields by 3.76 to 4.17 percent. This detrimental effect is most pronounced within a radius of 5 kg from the village center. Additionally, farmers increase their operating inputs to mitigate the adverse effects of industrial water pollution. These findings underscore the need for stringent environmental regulations and enhanced environmental education in rural areas to promote the sustainable development of both manufacturing industry and agriculture in developing countries.