Influence and Action Mechanisms of Governmental Relations Embeddedness for Fostering Green Production Demonstration Household: Evidence from Shaanxi, Sichuan, and Anhui Province, China

As an innovative tactic, the core aspects of green products should be comprehensively demonstrated and firmly promoted to enhance their adoption. For doing so, continuous governmental support and interventions through distinct sets of networking and relationships could be crucial for synthesizing and diffusing the extent of green production demonstration households. Interestingly, the structural relationship between these two has not yet been evaluated comprehensively by the existing literature. Therefore, the study empirically analyzes the impact and mechanism of government relationships embedded in fostering green production demonstration households. The study compiles the empirical data from 963 farmers which were collected from the major tea-producing areas of Shaanxi, Sichuan, and Anhui provinces, China. In order to craft the findings, first we constructed the ordered Probit for benchmark regression analysis. Meanwhile, the Ordinary Standard Error Ordered Probit model, Ordered Logit model, and multivariate linear model were constructed for the robustness test. Third, the Extended Ordered Probit model and Bootstrap mediation effect model were used to test the path diagram. Finally, robustness testing and endogeneity processing test were used to explore the reliability of the findings. The results showed that: (i) Government relationship embedding has a positive effect on fostering green production demonstration households. In particular, factors such as relationships with general government staff, professional and technical personnel, and village cadre are most significant. (ii) Seemingly, the heterogeneity analysis shows that the farmers with large operating scales and low family economic status have a relatively stronger impact. (iii) Further mechanism research results show that government relations are embedded through government identification (policy identification, government trust), improving farmers’ behavioral ability (production knowledge reserve, self-efficacy), and strengthening farmers’ perceived value of green production (self-interest perception, altruistic values). Therefore, the government should strengthen the interactive mechanism embedded with farm households and extend support for green production demonstration zones. The farmers’ information-sharing facilities and platforms should be modernized and highlighted according to the local conditions and long-term targeted strategies.