Crop Insurance and Agrochemical Use in the Manasi Watershed, Xinjiang, China

Funing Zhong ()
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Funing Zhong: College of Economics & Management Nanjing Agricultural, University Nanjing

No rr2007071, EEPSEA Research Report from Economy and Environment Program for Southeast Asia (EEPSEA)

Abstract: This study investigates the environmental impact of a government subsidy program for crop insurance in China. It looks at how crop insurance scheme in Xinjiang province affects the way cotton farmers use fertilizers, pesticides and plastic agro-film. These three inputs cause significant environmental problems in the region and there is a need to ensure that their over-use is not encouraged. The study finds that crop insurance helps protect farmers from the economic impact of crop failures, with a minimal negative impact on the environment. The only significant impact is a potential slight increase in agro-film use. In fact, crop insurance helps reduce the amount of pesticides cotton growers use. In light of these findings, the study concludes that a government-subsidized crop insurance program is an acceptable policy and proposes a number of ideas for minimizing any residual environmental impact it might have.

Keywords: crop; agrochemical; watershed; China (search for similar items in EconPapers)
Date: 2007-07, Revised 2007-07
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