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Does crop insurance reduce pesticide usage? Evidence from China

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  • Feng, Shuaizhang
  • Han, Yujie
  • Qiu, Huanguang

Abstract

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.

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  • Feng, Shuaizhang & Han, Yujie & Qiu, Huanguang, 2021. "Does crop insurance reduce pesticide usage? Evidence from China," China Economic Review, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:chieco:v:69:y:2021:i:c:s1043951x21000973
    DOI: 10.1016/j.chieco.2021.101679
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    5. Ziheng Niu & Feng Yi & Chen Chen, 2022. "Agricultural Insurance and Agricultural Fertilizer Non-Point Source Pollution: Evidence from China’s Policy-Based Agricultural Insurance Pilot," Sustainability, MDPI, vol. 14(5), pages 1-16, February.
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    7. Xiuling Ding & Apurbo Sarkar & Lipeng Li & Hua Li & Qian Lu, 2022. "Effects of Market Incentives and Livelihood Dependence on Farmers’ Multi-Stage Pesticide Application Behavior—A Case Study of Four Provinces in China," IJERPH, MDPI, vol. 19(15), pages 1-19, August.
    8. Sun, Shengyang & Zhang, Chao & Hu, Ruifa & Liu, Jian, 2023. "Do pesticide retailers’ recommendations aggravate pesticide overuse? Evidence from rural China," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 13(7), pages 1-1.
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