Does Outsourcing Service Reduce the Excessive Use of Chemical Fertilizers in Rural China? The Moderating Effects of Farm Size and Plot Size

The excessive use of chemical fertilizers (OCF) is one China’s main sources agricultural nonpoint source pollution. It debatable whether outsourcing service adoption (FOS) reduces OCF. This article argues that farm size and plot can moderate the effectiveness FOS in reducing Particularly, organizations earn more profits when they provide services to large-sized farms plots, thereby preventing their opportunistic behavior Based on survey data wheat growers from six major grain-producing counties Anhui Province, China, Cobb–Douglas production function used measure OCF, ordinary least squares (OLS) estimation as a benchmark. In addition, propensity score matching (PSM) eliminate selection bias, two-stage (IV-2sls) endogeneity. results indicate approximately 90% sampled households fertilizers, signifying remains serious problem. OCF large plots. However, disappeared it was provided small Extending organizing efficient land transfers should receive equal consideration policymakers.