Crop insurance subsidies and environmental externalities: evidence from Southern Italy

Fabian Capitanio (fabian.capitanio@unina.it), Adinolfi Felice and Santeramo Fabio G.

MPRA Paper from University Library of Munich, Germany

Abstract: Rapid environmental changes can affect agriculture by introducing additional sources of uncertainty. Conversely, policy interventions to help farmers cope with risks may have strong impacts on the environment. In this paper, we evaluate the effects of public risk management programmes, particularly subsidies on crop insurance, on fertilizer use and land allocation. We implement a mathematical programming model based on data collected from 1,092 farms in Puglia, a southern Italy region. The results show that under the current crop insurance programmes, input use is expected to increase, while the effect on production is likely to be crop-specific. The policy and environmental implications are discussed.

Keywords: uncertainty; risk management; input use; multifunctionality (search for similar items in EconPapers)
JEL-codes: Q18 Q50 (search for similar items in EconPapers)
Date: 2014-12-01
New Economics Papers: this item is included in nep-agr, nep-env, nep-ias and nep-mfd
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:62505

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