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Environmental implications of crop insurance subsidies in Southern Italy

Fabian Capitanio (), Felice Adinolfi and Fabio Santeramo ()

MPRA Paper from University Library of Munich, Germany

Abstract: The changing environment affects agriculture introducing sources of uncertainty. On the other hand, policies to cope with risks may have strong impacts on the environment. We evaluate the effects of public risk management programmes, such as subsidised crop insurance, fertilizer use and land allocation to crops. We implement a mathematical programming model of a representative wheat-tomato farm in Puglia, a southern Italy region. The results show that under the current crop insurance programmes, tomato productions are expected to expand and to require larger amount of fertilizer, whereas the opposite is true for wheat productions. Policy and environmental implications are discussed.

Keywords: uncertainty; risk; insurance; externalities; multifunctionality; environment (search for similar items in EconPapers)
JEL-codes: C60 D81 Q51 R58 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-agr, nep-env and nep-ias
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