EconPapers    
Economics at your fingertips  
 

The Environmental Impacts of Subsidized Crop Insurance

Jeffrey LaFrance (), Jay Shimshack and Steven Y. Wu

No 25082, CUDARE Working Papers from University of California, Berkeley, Department of Agricultural and Resource Economics

Abstract: A partial equilibrium model of stochastic crop production is used to analyze the environmental impacts of popular subsidized crop insurance programs. Land use is unchanged only when an actuarially fair, perfectly separating insurance contract is offered. For the more typical pooling equilibrium contracts, however, land with a minimum quality that is strictly lower than the minimum quality without insurance will be added to production. In such cases, the environment will be adversely effected. If economically marginal land is also environmentally marginal, pooling crop insurance policies disproportionately contribute to the degradation of the environment. Popular subsidies merely exacerbate the problem.

Keywords: Environmental Economics and Policy; Risk and Uncertainty (search for similar items in EconPapers)
Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://ageconsearch.umn.edu/record/25082/files/wp010912.pdf (application/pdf)

Related works:
Working Paper: The Environmental Impacts of Subsidized Crop Insurance (2001) Downloads
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:ags:ucbecw:25082

DOI: 10.22004/ag.econ.25082

Access Statistics for this paper

More papers in CUDARE Working Papers from University of California, Berkeley, Department of Agricultural and Resource Economics Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().

 
Page updated 2019-10-18
Handle: RePEc:ags:ucbecw:25082