Crop Insurance and pesticide use in French agriculture: an empirical analysis

Author

Raja Chakir (raja.chakir@grignon.inra.fr) and Julien Hardelin

Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, 2014, vol. 95, issue 1, pages 25-50

Abstract: This paper investigates the factors affecting the demand for crop–hail insurance and explores the potential relation with pesticide use for a sample of French farmers on the period 1993-2004, for the Meuse department. An econometric model involving two simultaneous equations with mixed censored/continuous dependent variables is estimated. Estimation results show that, in the case of rapeseed, insurance demand is significantly and positively related to pesticide use, but that the magnitude of this interaction is quite small. Insurance demand is positively influenced by the coefficient of variation of yield and the loss ratio, and is negatively influenced by Common Agricultural Policy subsidies and diversification of activity at farm level. These results shed light on the determinants of French farmers’ decisions related to risk management.

Keywords: crop insurance; pesticide demand; risk management; France (search for similar items in EconPapers)
JEL-codes: Q15 Q24 Q22 Q33 C34 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://ageconsearch.umn.edu/bitstream/208763/2/RAEStud-95-1-25-50.pdf

Related works:
Journal Article: Crop Insurance and pesticide use in French agriculture: an empirical analysis (2014) 
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:rae:jourae:v:95:y:2014:i:1:p:25-50

Access Statistics for this article

Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement is currently edited by Julien Salanié

More articles in Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement from  INRA Department of Economics Contact information at EDIRC.
Series data maintained by Nathalie Saux-Nogues (raestud@rennes.inra.fr).

For further details log on website :
http://econpapers.repec.org/article/raejourae/v_3a95_3ay_3a2014_3ai_3a1_3ap_3a25-50.htm