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ID182789
Title ProperDoes crop insurance reduce pesticide usage? evidence from China
LanguageENG
AuthorQiu, Huanguang ;  Feng, Shuaizhang ;  Han, Yujie
Summary / Abstract (Note)We test how crop insurance participation affects the intensity of pesticide use in China using data on staple crop production from eight provinces. Our preferred specification instruments farmers' decisions of participation in insurance by village-level intensities of promotional activities and controls for province fixed effects. We find crop insurance participation significantly reduces pesticide use intensity. The reduction effect is greater for smaller plots, older farmers, and farmers who are more risk averse.
`In' analytical NoteChina Economic Review Vol. 69, Oct 2021: p.101679
Journal SourceChina Economic Review 2021-09 69, 69
Key WordsFood Safety ;  Moral hazard ;  Environmental Sustainability ;  Crop Insurance ;  Pesticides