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Rooted in resilience: crop insurance as a fiscal tool for climate adaptation and nature restoration in the EU agri-food system

Wallis Greenslade, Daisy Jameson and Madeleine Tron

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: Climate change and nature degradation are creating increasingly frequent and severe impacts on the agri-food system in the European Union. This is driving crop losses across Member States, affecting local labour markets, supply chains, rural lending and related economic activities. These losses are largely uninsured, leaving crop farmers without the financial resilience to respond to these risks or prepare for future risks. Underinsurance in the crop sector has important implications for EU Ministries of Finance in their role in dampening the potential macroeconomic effects of agri-food shocks, maintaining rural sustainability and avoiding undue fiscal pressure from post-disaster expenditure. However, Ministries have several levers they can utilise to promote crop insurance as a fiscal tool for climate adaptation and nature restoration.

JEL-codes: J01 R14 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2026-05
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