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Some Simulation Results for a Green Insurance Mechanism

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  • Baerenklau, Kenneth A.

Abstract

This analysis extends previous work on green insurance by proposing a mechanism that offers a stronger adoption incentive and is applicable to heterogeneous populations and non-binary adoption decisions. Endogenous learning about the new technology is incorporated, and empirically calibrated simulation results are presented for the case of reduced-phosphorus dairy diets. Results show that the mechanism has a significant impact on behavior and may incur no net cost for the regulator when an insurance premium is charged. Conditions under which a green payment mechanism may be preferable to green insurance also are discussed.

Suggested Citation

  • Baerenklau, Kenneth A., 2005. "Some Simulation Results for a Green Insurance Mechanism," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(1), pages 1-15, April.
    • Handle: RePEc:ags:jlaare:30787
    DOI: 10.22004/ag.econ.30787
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    References listed on IDEAS

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    Cited by:

    1. Yann Raineau & Marianne Lefebvre & Chantal Le Mouël & Jesus Barreiro Hurle & Thomas M Chappell & Marius Wolf & Marco de Toffol & Dimitri Dubois & Sylvain Coutu & Niklas Möhring & Marco Rogna & Emilio , 2024. "Report on Proceedings of the Workshop on Alternative Business Models for Pesticide Reduction," Post-Print hal-04628080, HAL.
    2. Wu, Qianni & Chiu, Chun-Hung, 2023. "The impacts of carbon insurance on supply chain and environment considering technology risk under cap-and-trade mechanism," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 180(C).
    3. Shi-jie Jiang & Lilin Wang & Feiyun Xiang, 2023. "The Effect of Agriculture Insurance on Agricultural Carbon Emissions in China: The Mediation Role of Low-Carbon Technology Innovation," Sustainability, MDPI, vol. 15(5), pages 1-20, March.
    4. Meilin Ma & Carson Reeling & Megan N Hughes & Shalamar Armstrong & Richard Roth, 2023. "Comparison of conservation instruments under long-run yield uncertainty and farmer risk aversion," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(5), pages 1685-1714.

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