Implications of population growth and urbanization on agricultural risks in China

Growing population, rapid urbanization, rising incomes, and changing consumption preferences stimulate intensification of livestock production and excessive fertilization of crops in China. We present an innovative approach that sheds light on options to prevent negative environmental consequences of food production. Trends indicate that agricultural production expansion will take place in "profitable" locations around densely populated areas, where there are generally insufficient natural resources to recycle production wastes. This will likely lead to increased environmental impacts and risks to human health, with the largest impacts in close proximity to population hotspots. We identify trends in Chinese agricultural production and devise and compare feasible mitigation scenarios. We present a spatial allocation procedure that facilitates management of agricultural production expansion, accounting for environmental and health constraints. This procedure, based on behavioral principles, uses a spatial risk preference structure induced by local conditions, including environment, production, and demand, with important research and policy implications.
KEYWORDS: Agriculture; China; Demography; Environment; Health; Intensification; Pollution; Population growth; Spatial planning of production expansion; Urbanization

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