IDEAS home Printed from https://ideas.repec.org/p/zbw/esprep/330706.html
   My bibliography  Save this paper

Crop Insurance, Climate Change, and Public Policies in the Czech Republic

Author

Listed:
  • Janda, Karel
  • Turkova, Anezka

Abstract

This paper deals with the impact of climate change on crop insurance in the Czech Republic in the context of government support policies. It combines a comparative analysis of selected EU countries’ insurance systems with an empirical investigation of factors influencing Czech farmers’ decisions to purchase crop insurance. Using farm-level data, the analysis explores the roles of weather variability, government disaster aid, and participation in agri-environmental schemes. We show that past experience with extreme weather and dependence on state aid have a significant impact on insurance uptake, while recent weather anomalies and participation in environmental schemes have a limited influence.

Suggested Citation

  • Janda, Karel & Turkova, Anezka, 2025. "Crop Insurance, Climate Change, and Public Policies in the Czech Republic," EconStor Preprints 330706, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:330706
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/330706/1/Crop-insurance-climate-change-Czech-Republic.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. F. G. Santeramo & B. K. Goodwin & F. Adinolfi & F. Capitanio, 2016. "Farmer Participation, Entry and Exit Decisions in the Italian Crop Insurance Programme," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 639-657, September.
    2. Alberto Garrido & David Zilberman, 2008. "Revisiting the demand for agricultural insurance: the case of Spain," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 68(1), pages 43-66, May.
    3. Enjolras, Geoffroy & Capitanio, Fabian & Adinolfi, Felice, 2012. "The Demand for Crop Insurance: Combined Approaches for France and Italy," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 13(01), pages 1-18.
    4. Alberto Garrido & David Zilberman, 2008. "Revisiting the demand for agricultural insurance: the case of Spain," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 68(1), pages 43-66, May.
    5. Bruce J. Sherrick & Peter J. Barry & Paul N. Ellinger & Gary D. Schnitkey, 2004. "Factors Influencing Farmers' Crop Insurance Decisions," American Journal of Agricultural Economics, John Wiley & Sons, vol. 86(1), pages 103-114, February.
    6. Olivier Mahul & Charles J. Stutley, 2010. "Government Support to Agricultural Insurance : Challenges and Options for Developing Countries," World Bank Publications - Books, The World Bank Group, number 2432, April.
    7. Velandia, Margarita & Rejesus, Roderick M. & Knight, Thomas O. & Sherrick, Bruce J., 2009. "Factors Affecting Farmers' Utilization of Agricultural Risk Management Tools: The Case of Crop Insurance, Forward Contracting, and Spreading Sales," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 41(1), pages 107-123, April.
    8. Elodie Blanc & Wolfram Schlenker, 2017. "The Use of Panel Models in Assessments of Climate Impacts on Agriculture," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 11(2), pages 258-279.
    9. Ashok K. Mishra & Barry K. Goodwin, 2003. "Adoption of crop versus revenue insurance: a farm‐level analysis," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 63(2), pages 143-155, November.
    10. Mao, Hui & Sun, Zhenkai & Chai, Anyuan & Fang, Lan & Shi, Chaoqian, 2025. "Extreme Weather, agricultural insurance and farmer's climate adaptation technologies adoption in China," Ecological Economics, Elsevier, vol. 228(C).
    11. Stefan Baumgärtner & Martin F. Quaas, 2010. "Managing increasing environmental risks through agrobiodiversity and agrienvironmental policies," Agricultural Economics, International Association of Agricultural Economists, vol. 41(5), pages 483-496, September.
    12. de Meza, David & Webb, David C, 2001. "Advantageous Selection in Insurance Markets," RAND Journal of Economics, The RAND Corporation, vol. 32(2), pages 249-262, Summer.
    13. Maximilian Auffhammer & Solomon M. Hsiang & Wolfram Schlenker & Adam Sobel, 2013. "Using Weather Data and Climate Model Output in Economic Analyses of Climate Change," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 7(2), pages 181-198, July.
    14. Bruce J. Sherrick & Peter J. Barry & Paul N. Ellinger & Gary D. Schnitkey, 2004. "Factors Influencing Farmers' Crop Insurance Decisions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 103-114.
    15. Morten W. Fagerland & David W. Hosmer & Hajime Uno, 2017. "How to test for goodness of fit in ordinal logistic regression models," Stata Journal, StataCorp LLC, vol. 17(3), pages 668-686, September.
    16. Michael Rothschild & Joseph Stiglitz, 1976. "Equilibrium in Competitive Insurance Markets: An Essay on the Economics of Imperfect Information," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 90(4), pages 629-649.
    17. Reimund Schwarze & Oleksandr Sushchenko, 2022. "Climate Insurance for Agriculture in Europe: On the Merits of Smart Contracts and Distributed Ledger Technologies," JRFM, MDPI, vol. 15(5), pages 1-16, May.
    18. Adam Wąs & Pawel Kobus, 2018. "Factors differentiating the level of crop insurance at Polish farms," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 78(2), pages 209-222, March.
    19. Keith H. Coble & Thomas O. Knight & Rulon D. Pope & Jeffery R. Williams, 1997. "An Expected-Indemnity Approach to the Measurement of Moral Hazard in Crop Insurance," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 216-226.
    20. Ruixue Wang & Roderick M Rejesus & Serkan Aglasan, 2021. "Warming Temperatures, Yield Risk and Crop Insurance Participation [Federal crop insurance and the disincentive to adapt to extreme heat]," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(5), pages 1109-1131.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ruggiero Rippo & Simone Cerroni, 2023. "Farmers' participation in the Income Stabilisation Tool: Evidence from the apple sector in Italy," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(1), pages 273-294, February.
    2. Mbonane, Nobuhle Duduzile, 2018. "An analysis of farmers’ preferences for crop insurance: a case of maize farmers in Swaziland," Research Theses 334771, Collaborative Masters Program in Agricultural and Applied Economics.
    3. Vigani, Mauro & Khafagy, Amr & Berry, Robert, 2024. "Public spending for agricultural risk management: Land use, regional welfare and intra-subsidy substitution," Food Policy, Elsevier, vol. 123(C).
    4. F. G. Santeramo & B. K. Goodwin & F. Adinolfi & F. Capitanio, 2016. "Farmer Participation, Entry and Exit Decisions in the Italian Crop Insurance Programme," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 639-657, September.
    5. Fabio G Santeramo, 2019. "I Learn, You Learn, We Gain Experience in Crop Insurance Markets," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 41(2), pages 284-304, June.
    6. Nordmeyer, Eike Florenz, 2023. "German farmers' perceived usefulness of satellite-based index insurance - Insights from a transtheoretical model," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334557, Agricultural Economics Society - AES.
    7. César Salazar & Marcela Jaime & Cristián Pinto & Andrés Acuña, 2019. "Interaction between crop insurance and technology adoption decisions: The case of wheat farmers in Chile," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(3), pages 593-619, July.
    8. Marco Rogna & Günter Schamel & Alex Weissensteiner, 2023. "Modelling the switch from hail insurance to antihail nets," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(1), pages 118-136, January.
    9. Céline Grislain-Letrémy & Bertrand Villeneuve & Marc Yeterian, 2024. "Don't bet the Farm on Crop Insurance Subsidies: A Marginal Treatment Effect Analysis of French Farms," Working papers 956, Banque de France.
    10. Fabio G., Santeramo & Ilaria, Russo & Emilia, Lamonaca, 2022. "Italian subsidised crop insurance: what the role of policy changes," MPRA Paper 115299, University Library of Munich, Germany.
    11. Tim Philippi & Jörg Schiller, 2024. "Abandoning disaster relief and stimulating insurance demand through premium subsidies," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 91(2), pages 339-382, June.
    12. Tappi, Marco & Nardone, Gianluca & Santeramo, Fabio Gaetano, . "On the relationships among durum wheat yields and weather conditions: evidence from Apulia region, Southern Italy," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2).
    13. Peilu Zhang & Marco A. Palma, 2021. "Compulsory Versus Voluntary Insurance: An Online Experiment," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 106-125, January.
    14. Birthal, Pratap S. & Hazrana, Jaweriah & Negi, Digvijay S. & Mishra, Ashok K., 2022. "Assessing benefits of crop insurance vis-a-vis irrigation in Indian agriculture," Food Policy, Elsevier, vol. 112(C).
    15. Mauro Vigani & Jonas Kathage, 2019. "To Risk or Not to Risk? Risk Management and Farm Productivity," American Journal of Agricultural Economics, John Wiley & Sons, vol. 101(5), pages 1432-1454, October.
    16. Dimitar Nikolov & Sergio Gomez-y-Paloma & Minka Chopeva & Marianne Lefebvre, 2014. "Main Factors of the Development and Attractiveness of the Insurance Market for the Agricultural Companies," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 99-121.
    17. Schmitt, Jonas & Offermann, Frank & Finger, Robert, 2025. "The use of crop diversification in agricultural yield insurance products," Food Policy, Elsevier, vol. 134(C).
    18. Fabian Capitanio & Antonio De Pin, 2018. "Measures of Efficiency of Agricultural Insurance in Italy, Economic Evaluations," Risks, MDPI, vol. 6(4), pages 1-19, November.
    19. Dragos, Cristian Mihai & Dragos, Simona Laura & Mare, Codruta & Muresan, Gabriela Mihaela & Purcel, Alexandra-Anca, 2023. "Does risk assessment and specific knowledge impact crop insurance underwriting? Evidence from Romanian farmers," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 343-358.
    20. He, Juan & Zheng, Xiaoyong & Rejesus, Roderick M. & Yorobe Jr., Jose M., . "Moral hazard and adverse selection effects of cost-of-production crop insurance: evidence from the Philippines," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(01).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:esprep:330706. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.