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Journal of Tea Science ›› 2023, Vol. 43 ›› Issue (6): 881-890.

• Research Paper • Previous Articles    

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*   

  1. Tea Research Institute, Chinese Academy of Agricultural Sciences, Hangzhou 310008, China
  • Received:2023-10-07 Revised:2023-11-27 Online:2023-12-15 Published:2024-01-08

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.

Key words: organic certification, business profit, tea enterprises, counterfactual estimates

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