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Does crop insurance influence agrochemical uses under current Chinese situations? A case study in the Manasi watershed, Xinjiang

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  • Funing Zhong
  • Manxiu Ning
  • Li Xing

Abstract

Government subsidy to crop insurance has been advocated as a policy alternative to support growth of agricultural production and farmers' income in China since the country joined the WTO. However, cautions have been raised as the crop insurance program may impact the environment negatively. This study tries to explore farmers' behaviors with regard to agrochemical use with household data applied to a simultaneous equation system consisting of disaggregated input models. It is found that decisions on fertilizer, pesticides, and agro‐film applications do have different impacts on crop insurance participation, and are influenced by the latter in different ways. It is also implied that encouraging farmers' participation in crop insurance under current low‐premium and low‐indemnity terms does not have a significantly negative impact on the environment.

Suggested Citation

  • Funing Zhong & Manxiu Ning & Li Xing, 2007. "Does crop insurance influence agrochemical uses under current Chinese situations? A case study in the Manasi watershed, Xinjiang," Agricultural Economics, International Association of Agricultural Economists, vol. 36(1), pages 103-112, January.
    • Handle: RePEc:bla:agecon:v:36:y:2007:i:1:p:103-112
    DOI: 10.1111/j.1574-0862.2007.00180.x
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    References listed on IDEAS

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    1. Goodwin, Barry K. & Vandeveer, Monte & Deal, John, 2001. "The Federal Crop Insurance Program - An Empirical Analysis Of Regional Differences In Acreage Response And Participation," 2001 Annual meeting, August 5-8, Chicago, IL 20579, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Cited by:

    1. Yuehua Zhang & Ying Cao & H. Holly Wang, 2018. "Cheating? The Case of Producers’ Under‐Reporting Behavior in Hog Insurance in China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(3), pages 489-510, September.
    2. Qiujie Zheng & H. Holly Wang & Qing Hua Shi, 2014. "Estimating bivariate yield distributions and crop insurance premiums using nonparametric methods," Applied Economics, Taylor & Francis Journals, vol. 46(18), pages 2108-2118, June.
    3. Cai, Rong & Ma, Jie & Wang, shujuan & Cai, Shukai, 2024. "Can crop insurance help optimize farmers’ decisions on pesticides use? Evidence from family farms in East China," Journal of Asian Economics, Elsevier, vol. 92(C).
    4. Yuqiang Gao & Yongkang Shu & Hongjie Cao & Shuting Zhou & Shaobin Shi, 2021. "Fiscal Policy Dilemma in Resolving Agricultural Risks: Evidence from China’s Agricultural Insurance Subsidy Pilot," IJERPH, MDPI, vol. 18(14), pages 1-11, July.
    5. Taehoo Kim & Man‐Keun Kim, 2018. "Ex‐post moral hazard in prevented planting," Agricultural Economics, International Association of Agricultural Economists, vol. 49(6), pages 671-680, November.
    6. Hui Mao & Shaojian Chen & RuiYao Ying & Yong Fu, 2023. "How crop insurance influences agrochemical input use: Evidence from cotton farmers in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(2), pages 224-244, April.
    7. Xudong Rao & Yuehua Zhang, 2020. "Livestock insurance, moral hazard, and farmers’ decisions: a field experiment among hog farms in China," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 45(1), pages 134-156, January.
    8. Zhifeng Zhang & Haodong Xu & Shuangshuang Shan & Qingzhi Liu & Yuqi Lu, 2022. "Whether the Agricultural Insurance Policy Achieves Green Income Growth—Evidence from the Implementation of China’s Total Cost Insurance Pilot Program," IJERPH, MDPI, vol. 19(2), pages 1-20, January.
    9. Feng, Shuaizhang & Han, Yujie & Qiu, Huanguang, 2021. "Does crop insurance reduce pesticide usage? Evidence from China," China Economic Review, Elsevier, vol. 69(C).

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