Promoting the adoption of environmentally friendly agricultural practices: The role of crop insurance participation
Abstract This study investigates the impact of crop insurance participation on farmers' adoption of environmentally friendly agricultural practices using microsurvey data from the China Land Economic Survey 2020. Propensity score matching and an endogenous switching probit model are applied to address potential selection bias. We find that crop insurance participation has significant and positive effects on farmers' adoption of straw return and biological pesticides. Specifically, it increases the probability of adopting straw return and biological pesticides by 45.6% and 46.3%, respectively. These impacts are particularly large for younger, larger scale and more risk‐averse farmers. Our results highlight the necessity of supporting crop insurance participation to encourage desirable environmental outcomes. We also discuss potential policies to facilitate crop insurance uptake in rural China.
Authors
- Ziming Liu (ORCID: https://orcid.org/0000-0002-8867-2682)
- Min Su (ORCID: https://orcid.org/0009-0004-7524-4912)
- Shuyi Feng (ORCID: https://orcid.org/0000-0002-7815-9682)
Institutions
- Nanjing Agricultural University (CN)
- China Resources (China) (CN)
- Zhejiang University (CN)
Publication Details
- Journal
- Australian Journal of Agricultural and Resource Economics
- Published
- 2024-12-10
- DOI
- https://doi.org/10.1111/1467-8489.12603
- Primary Topic
- Agricultural risk and resilience
- Type
- article
- Field-Weighted Citation Impact
- 0.00
Funders
- National Natural Science Foundation of China
- Ministry of Science and Technology of the People's Republic of China
- State Administration of Foreign Experts Affairs
- China Scholarship Council
- National Social Science Fund of China