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Crop insurance subsidies and environmental externalities: evidence from Southern Italy

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  • Fabian, Capitanio
  • Felice, Adinolfi
  • Fabio G., Santeramo

Abstract

Rapid environmental changes can affect agriculture by introducing additional sources of uncertainty. Conversely, policy interventions to help farmers cope with risks may have strong impacts on the environment. In this paper, we evaluate the effects of public risk management programmes, particularly subsidies on crop insurance, on fertilizer use and land allocation. We implement a mathematical programming model based on data collected from 1,092 farms in Puglia, a southern Italy region. The results show that under the current crop insurance programmes, input use is expected to increase, while the effect on production is likely to be crop-specific. The policy and environmental implications are discussed.

Suggested Citation

  • Fabian, Capitanio & Felice, Adinolfi & Fabio G., Santeramo, 2014. "Crop insurance subsidies and environmental externalities: evidence from Southern Italy," MPRA Paper 62505, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:62505
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    References listed on IDEAS

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    Cited by:

    1. Yuqiang Gao & Yongkang Shu & Hongjie Cao & Shuting Zhou & Shaobin Shi, 2021. "Fiscal Policy Dilemma in Resolving Agricultural Risks: Evidence from China’s Agricultural Insurance Subsidy Pilot," IJERPH, MDPI, vol. 18(14), pages 1-11, July.
    2. Liguo Zhang & Xuerong Li, 2016. "The Impact of Traditional Culture on Farmers’ Moral Hazard Behavior in Crop Production: Evidence from China," Sustainability, MDPI, vol. 8(7), pages 1-15, July.
    3. Coderoni, Silvia & Longhitano, Davide & Vinci, Adele, 2014. "Payment for Ecosystem Service for Carbon Credits from Italian Olive Groves. Some Issues Regarding the Mode of Payment," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(4), pages 1-18, October.
    4. Bopp, Carlos & Engler, Alejandra & Jara-Rojas, Roberto & Arriagada, Rodrigo, 2020. "Are forest plantation subsidies affecting land use change and off-farm income? A farm-level analysis of Chilean small forest landowners," Land Use Policy, Elsevier, vol. 91(C).

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    More about this item

    Keywords

    uncertainty; risk management; input use; multifunctionality;
    All these keywords.

    JEL classification:

    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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