Effect of Insurance Subsidies on Agricultural Land-Use

Chengyu Si, Yanru Li and Wei Jiang ()
Additional contact information
Chengyu Si: School of Economics, Hangzhou Normal University, Hangzhou 311121, China
Yanru Li: Nanjing Intellectual Property Protection Center, Nanjing 211800, China
Wei Jiang: School of Economics, Hangzhou Normal University, Hangzhou 311121, China

IJERPH, 2023, vol. 20, issue 2, 1-12

Abstract: This paper investigates the effect of crop insurance-subsidies on agricultural land-use allocation. Since the objective of crop insurance is to help farmers with risk management, the expected profit from crop production under crop insurance might be improved, leading farmers to allocate more land to crop production. In this paper, agricultural land-use type is classified by irrigated/unirrigated farmland and cropland/woodland/pastureland. The data come from counties from all the continental states. Considering the fractional outcome of land-use share, we apply a multinomial-fractional-logit model to estimate the effects. The results show that insurance subsidies have a significant effect on land-use allocation. An increase in insurance subsidies increases farmland-share, indicating insurance subsidies could be an efficient tool to adjust agricultural land-use allocation.

Keywords: land use; insurance subsidies; multinomial- fractional-logit model (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.mdpi.com/1660-4601/20/2/1493/pdf (application/pdf)
https://www.mdpi.com/1660-4601/20/2/1493/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jijerp:v:20:y:2023:i:2:p:1493-:d:1035321

Access Statistics for this article

IJERPH is currently edited by Ms. Jenna Liu

More articles in IJERPH from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().