Crop Insurance for Energy Grasses
AbstractThis study compares the efficiency of three policy instruments (i.e., crop insurance, establishment cost share, and biomass price subsidy) in promoting energy crop production. The efficiency is measured by energy crop acreage increased due to the policy instrument for a given amount of government expenditure supporting the instrument. Based on a unique dataset of county-level miscanthus yield over 1979-2010 across the rainfed region of the United States, our results show that if there is no credit constraint in financing establishment costs then crop insurance is most efficient and biomass price subsidy is least efficient among the three policy instruments. If there is credit constraint in financing establishment costs, however, then crop insurance is more (respectively, less) efficient than establishment cost share for small (respectively, large) expenditure. Geographical distributions of energy crop acreage under different policy instruments are studied as well.
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Bibliographic InfoPaper provided by Agricultural and Applied Economics Association in its series 2013 AAEA: Crop Insurance and the Farm Bill Symposium, October 8-9, Louisville, KY with number 156936.
Date of creation: 2013
Date of revision:
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crop insurance; energy crops; establishment costs; miscanthus; yield; Land Economics/Use; Production Economics; Resource /Energy Economics and Policy; Risk and Uncertainty; Q15; Q16; Q28;
Find related papers by JEL classification:
- Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-10-18 (Agricultural Economics)
- NEP-ALL-2013-10-18 (All new papers)
- NEP-IAS-2013-10-18 (Insurance Economics)
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