Beyond risk management: Crop insurance premium subsidies reduce cropland abandonment in China

IF 2.6 3区经济学 Q2 AGRICULTURAL ECONOMICS & POLICY

Australian Journal of Agricultural and Resource Economics Pub Date : 2024-09-03 DOI:10.1111/1467-8489.12586

Biao Ma, Chao Peng, Le Yu

{"title":"Beyond risk management: Crop insurance premium subsidies reduce cropland abandonment in China","authors":"Biao Ma, Chao Peng, Le Yu","doi":"10.1111/1467-8489.12586","DOIUrl":null,"url":null,"abstract":"<p>Although crop insurance is widely acknowledged as an effective risk management strategy for safeguarding food security, the causality between crop insurance premium subsidies and cropland abandonment remains inadequately investigated. This study employs a staggered difference-in-differences model to investigate the impact of the Crop Insurance Premium Subsidies Program (CISP) on cropland abandonment using representative household-level panel data from China spanning from 2004 to 2012. Our analysis reveals that crop insurance premium subsidies significantly mitigate cropland abandonment. This relationship is primarily due to the stabilisation of household income growth, which incentivises farmers to augment agricultural inputs and enhance development resilience. Furthermore, our heterogeneous analysis indicates that the effect of the CISP is more pronounced in households located in non-grain-producing regions or areas with lower economic development. These findings underscore the previously overlooked role of crop insurance premium subsidies in preventing cropland abandonment and offer new insights into measures aimed at ensuring food security.</p>","PeriodicalId":55427,"journal":{"name":"Australian Journal of Agricultural and Resource Economics","volume":"68 4","pages":"891-911"},"PeriodicalIF":2.6000,"publicationDate":"2024-09-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Australian Journal of Agricultural and Resource Economics","FirstCategoryId":"96","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1111/1467-8489.12586","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"AGRICULTURAL ECONOMICS & POLICY","Score":null,"Total":0}

引用次数: 0

Abstract

Although crop insurance is widely acknowledged as an effective risk management strategy for safeguarding food security, the causality between crop insurance premium subsidies and cropland abandonment remains inadequately investigated. This study employs a staggered difference-in-differences model to investigate the impact of the Crop Insurance Premium Subsidies Program (CISP) on cropland abandonment using representative household-level panel data from China spanning from 2004 to 2012. Our analysis reveals that crop insurance premium subsidies significantly mitigate cropland abandonment. This relationship is primarily due to the stabilisation of household income growth, which incentivises farmers to augment agricultural inputs and enhance development resilience. Furthermore, our heterogeneous analysis indicates that the effect of the CISP is more pronounced in households located in non-grain-producing regions or areas with lower economic development. These findings underscore the previously overlooked role of crop insurance premium subsidies in preventing cropland abandonment and offer new insights into measures aimed at ensuring food security.

查看原文本刊更多论文

超越风险管理：中国的农作物保险保费补贴减少了耕地抛荒

尽管农作物保险被广泛认为是保障粮食安全的有效风险管理策略，但对农作物保险保费补贴与耕地抛荒之间的因果关系仍缺乏充分的研究。本研究采用交错差分模型，利用中国 2004 年至 2012 年具有代表性的家庭面板数据，研究了农作物保险费补贴计划（CISP）对耕地抛荒的影响。我们的分析表明，农作物保险费补贴显著缓解了耕地抛荒。这种关系主要归因于家庭收入增长的稳定，从而激励农民增加农业投入，增强发展韧性。此外，我们的异质性分析表明，在非谷物产区或经济发展水平较低的地区，CISP 对家庭的影响更为明显。这些发现强调了以前被忽视的作物保险费补贴在防止耕地撂荒方面的作用，并为旨在确保粮食安全的措施提供了新的见解。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Australian Journal of Agricultural and Resource Economics 管理科学-农业经济与政策

CiteScore

6.30

自引率

0.00%

发文量

审稿时长

>24 weeks

期刊介绍： The Australian Journal of Agricultural and Resource Economics (AJARE) provides a forum for innovative and scholarly work in agricultural and resource economics. First published in 1997, the Journal succeeds the Australian Journal of Agricultural Economics and the Review of Marketing and Agricultural Economics, upholding the tradition of these long-established journals. Accordingly, the editors are guided by the following objectives: -To maintain a high standard of analytical rigour offering sufficient variety of content so as to appeal to a broad spectrum of both academic and professional economists and policymakers. -In maintaining the tradition of its predecessor journals, to combine articles with policy reviews and surveys of key analytical issues in agricultural and resource economics.