Impact of agricultural insurance on farmers’ adoption of green production technologies: evidence from vegetable growers in China

Against the backdrop of mounting resource constraints and increasing environmental stresses, examining the relationship between agricultural insurance and farmers’ adoption of green production technologies is crucial for ensuring sustainable agricultural development. This study empirically assess the impact and mechanism of agricultural insurance on farmers’ adoption of green production technologies, using microsurvey data from 459 vegetable growers in Shandong Province, China. Research has found that purchasing agricultural insurance can promote the adoption of green production technologies by vegetable growers. However, purchasing agricultural insurance can encourage farmers to adopt comprehensive pest and disease control technologies, soil-testing and formula-fertilizer approaches, and water-saving irrigation technologies. In terms of its mechanism, agricultural insurance promotes farmers to adopt green production technologies by enhancing agricultural operating income. The advance analysis indicates the environmental regulation exerts positive moderating effects only in the processes through which agricultural insurance influences farmers’ adoption of integrated pest management and soil testing for formulated fertilization. In contrast, its moderating effect on water-saving irrigation techniques is not significant. Therefore, we should fully leverage the green orientation of agricultural insurance, continuously strengthen its income-guarantee effect, and ensure association between agricultural insurance and environmental regulatory policies for sustainable agriculture.