Does crop insurance reduce pesticide usage? Evidence from China

Shuaizhang Feng, Yujie Han () and Huanguang Qiu

China Economic Review, 2021, vol. 69, issue C

Abstract: We test how crop insurance participation affects the intensity of pesticide use in China using data on staple crop production from eight provinces. Our preferred specification instruments farmers' decisions of participation in insurance by village-level intensities of promotional activities and controls for province fixed effects. We find crop insurance participation significantly reduces pesticide use intensity. The reduction effect is greater for smaller plots, older farmers, and farmers who are more risk averse.

Keywords: Crop insurance; Pesticides; Moral hazard; Food safety; Environmental sustainability (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:69:y:2021:i:c:s1043951x21000973

DOI: 10.1016/j.chieco.2021.101679

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