The Impact of Organic Certification on the Business Profit of Tea Enterprises: Counterfactual Estimation Based on Propensity Score Matching

YANG Xulin; PAN Changjian; JIANG Renhua

doi:10.13305/j.cnki.jts.2023.06.009

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Journal of Tea Science ›› 2023, Vol. 43 ›› Issue (6) : 881-890. DOI: 10.13305/j.cnki.jts.2023.06.009

The Impact of Organic Certification on the Business Profit of Tea Enterprises: Counterfactual Estimation Based on Propensity Score Matching

YANG Xulin, PAN Changjian, JIANG Renhua^*

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Abstract

This paper empirically examined the impact of organic certification on tea enterprises’ business profit using the propensity score matching method based on the data of 288 tea enterprises nationwide. The empirical evidence shows that organic certification has a positive effect on the business profit of tea enterprises, and this effect is heterogeneous in different regions and different tea plantation sizes. Compared with the central and western tea enterprises, the participation of eastern enterprises in organic certification has a significant effect on improving business profits. Compared with tea enterprises with a median or higher area of their own tea gardens, enterprises with smaller area of their own tea gardens have a greater benefit from participating in organic certification. Accordingly, governments can support tea enterprises to carry out organic certification in the framework of green development. Enterprises in the central and western regions can learn from the practical experience of the development of organic tea in eastern enterprises. Tea enterprises need to combine their own development positioning and market demand, consider whether to promote the quality and efficiency of enterprises through organic certification.

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business profit / counterfactual estimates / organic certification / tea enterprises

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YANG Xulin, PAN Changjian, JIANG Renhua. The Impact of Organic Certification on the Business Profit of Tea Enterprises: Counterfactual Estimation Based on Propensity Score Matching[J]. Journal of Tea Science. 2023, 43(6): 881-890 https://doi.org/10.13305/j.cnki.jts.2023.06.009

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