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

Author

Listed:
  • Funing Zhong

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

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.

Suggested Citation

  • Funing Zhong, 2007. "Crop Insurance and Agrochemical Use in the Manasi Watershed, Xinjiang, China," EEPSEA Research Report rr2007071, Economy and Environment Program for Southeast Asia (EEPSEA), revised Jul 2007.
    • Handle: RePEc:eep:report:rr2007071
    as

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    File URL: http://www.eepsea.org/pub/rr/11851744831Funing_RR7.pdf
    File Function: First version, 2007
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    References listed on IDEAS

    as
    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.
    2. Goodwin, Barry K. & Vandeveer, Monte & Deal, John, 2001. "The Federal Crop Insurance Program - An Empirical Analysis Of Regional Differences In Acreage Response And Participation," 2001 Annual meeting, August 5-8, Chicago, IL 20579, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. 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.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    crop; agrochemical; watershed; China;
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