Learning about best management practices: Theory and experimentation under the umbrella of crop insurance

Cécile Aubert, Yann Raineau () and Marc Raynal
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Cécile Aubert: BSE - Bordeaux sciences économiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes
Yann Raineau: UR ETTIS - Environnement, territoires en transition, infrastructures, sociétés - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, BSE - Bordeaux sciences économiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement
Marc Raynal: IFV Sud Ouest - Institut Français de la Vigne et du Vin, Pôle Sud-Ouest - IFV - Institut Français de la Vigne et du Vin [Siège]

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Abstract: Abstract Decision Support Systems (DSS) with embedded best management practices help reduce pesticide use. However, costly experimentation is necessary to learn about the quality of their data processing and recommendation models. We study farmers' choices to try such a DSS. Due to order effects, learning can be inefficient and stop after inadequate recommendations, leading to crop losses. Subsidizing crop insurance conditional on DSS use is a cost-effective policy to foster experimentation. A 4-year living lab on-farm experiment involving French wine cooperatives, an insurer, and researchers supports our theoretical results on learning dynamics and provides additional insight into information requirements for subsidized green insurance.

Date: 2025-12-19
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Published in European Review of Agricultural Economics, 2025, ⟨10.1093/erae/jbaf065⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05426612

DOI: 10.1093/erae/jbaf065

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