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Study On Crop Insurance And Farmer's Production Behavior

Posted on:2007-09-17Degree:DoctorType:Dissertation
Country:ChinaCandidate:M X NingFull Text:PDF
GTID:1119360212455114Subject:Agricultural Economics and Management
Abstract/Summary:PDF Full Text Request
The vulnerability of Chinese agricultural sector due to lack of economy of scale, especially that of bulk commodities, has become a hot topic after the country joining the WTO in 2002. With China entering into the WTO, both policy makers and relevant interested groups such as the economists and environmentalists are looking for alternative mechanism to protect fanners' income and environment simultaneously under the "Green Box" framework. Restricted by China's accession commitments that prohibit China from supporting agriculture with price and export subsidies, alternative policy measures have been sought by the government in accordance with WTO rules. Budget subsidies to crop insurance, as one of the most important non-price security systems under the "Green Box" framework, has been advocated at the expectations of stimulating production against risk, and providing more stable and perhaps higher income to farmers.However, as some previous studies have shown, crop insurance might encourage more or less application of agrochemicals and hence bring negative or positive impact on the environment and future growth of agriculture. If it affect environment negatively, the outcome of subsidizing crop insurance may contradict to its policy goals in the long run. It is obvious that the potential environmental impact of crop insurance depends on farmers' decisions with regard to agrochemical application under current social, economic, and environment conditions. This study tries to explore if farmers' decision of crop insurance participation is simultaneously made with that of agrochemical application, and if so, to what extent it may impact the environment. This paper chooses cotton insurance which has been practiced for 20 years in Manas watershed to analyze the environmental implications of the current crop insurance program, and to provide some empirical evidence for constructing agricultural policies, which could not only avert agricultural risk, compensate...
Keywords/Search Tags:Crop Insurance, Environment, Willingness-to-Pay, Budget Subsidy
PDF Full Text Request
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