Crop Insurance for Energy Grasses

Ruiqing Miao and Madhu Khanna

No 156936, 2013 AAEA: Crop Insurance and the Farm Bill Symposium from Agricultural and Applied Economics Association

Abstract: This study compares the efficiency of three policy instruments (i.e., crop insurance, establishment cost share, and biomass price subsidy) in promoting energy crop production. The efficiency is measured by energy crop acreage increased due to the policy instrument for a given amount of government expenditure supporting the instrument. Based on a unique dataset of county-level miscanthus yield over 1979-2010 across the rainfed region of the United States, our results show that if there is no credit constraint in financing establishment costs then crop insurance is most efficient and biomass price subsidy is least efficient among the three policy instruments. If there is credit constraint in financing establishment costs, however, then crop insurance is more (respectively, less) efficient than establishment cost share for small (respectively, large) expenditure. Geographical distributions of energy crop acreage under different policy instruments are studied as well.

Keywords: Land Economics/Use; Production Economics; Resource/Energy Economics and Policy; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 33
Date: 2013
New Economics Papers: this item is included in nep-agr and nep-ias
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaeaci:156936

DOI: 10.22004/ag.econ.156936

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