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Crop Insurance and Agrochemical Use in the Manasi Watershed, Xinjiang, China

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Author Info

  • Funing Zhong

    () (College of Economics & Management Nanjing Agricultural, University Nanjing)

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    Abstract

    This study investigates the environmental impact of a government subsidy program for crop insurance in China. It looks at how crop insurance scheme in Xinjiang province affects the way cotton farmers use fertilizers, pesticides and plastic agro-film. These three inputs cause significant environmental problems in the region and there is a need to ensure that their over-use is not encouraged. The study finds that crop insurance helps protect farmers from the economic impact of crop failures, with a minimal negative impact on the environment. The only significant impact is a potential slight increase in agro-film use. In fact, crop insurance helps reduce the amount of pesticides cotton growers use. In light of these findings, the study concludes that a government-subsidized crop insurance program is an acceptable policy and proposes a number of ideas for minimizing any residual environmental impact it might have.

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    File URL: http://www.idrc.ca/uploads/user-S/11851744831Funing_RR7.pdf
    File Function: First version, 2007
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    Bibliographic Info

    Paper provided by Economy and Environment Program for Southeast Asia (EEPSEA) in its series EEPSEA Research Report with number rr2007071.

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    Date of creation: Jul 2007
    Date of revision: Jul 2007
    Handle: RePEc:eep:report:rr2007071

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    Related research

    Keywords: crop; agrochemical; watershed; China;

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    1. Roberts, Michael J. & Osteen, Craig D. & Soule, Meredith J., 2004. "Risk, Government Programs, And The Environment," Technical Bulletins 33563, United States Department of Agriculture, Economic Research Service.
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