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Green Insurance for Pesticide Reduction: Acceptability and Impact for French Viticulture

Author

Listed:
  • Marianne Lefebvre
  • Yann Raineau
  • Cécile Aubert
  • Niklas Möhring
  • Pauline Pedehour
  • Marc Raynal

Abstract

Green insurance can help producers manage the risks of transitioning to more environmentally friendly practices. We investigate the uptake determinant and potential pesticide reduction in the viticulture sector, a major pesticide user, using a choice experiment with 412 French growers. Correcting for sampling bias, we find that between 48 per cent and 60 per cent (depending on contract features) are likely to take up green insurance. The insurance offers compensation for yield losses caused by the failure to contain diseases of a Decision Support System targeting pesticide reduction. We find an average 45 per cent reduction in fungicide use for adopters and conclude that green insurance can be a cost-effective tool for achieving the EU’s ambitious pesticide objectives.

Suggested Citation

  • Marianne Lefebvre & Yann Raineau & Cécile Aubert & Niklas Möhring & Pauline Pedehour & Marc Raynal, 2024. "Green Insurance for Pesticide Reduction: Acceptability and Impact for French Viticulture," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 51(5), pages 1201-1272.
    • Handle: RePEc:oup:erevae:v:51:y:2024:i:5:p:1201-1272.
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    File URL: http://hdl.handle.net/10.1093/erae/jbaf002
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