Abstract
Green insurance can help producers manage the risks of transitioning to more environmentally friendly practices. We investigate the uptake determinant and potential pesticide reduction in the viticulture sector, a major pesticide user, using a choice experiment with 412 French growers. Correcting for sampling bias, we find that between 48 per cent and 60 per cent (depending on contract features) are likely to take up green insurance. The insurance offers compensation for yield losses caused by the failure to contain diseases of a Decision Support System targeting pesticide reduction. We find an average 45 per cent reduction in fungicide use for adopters and conclude that green insurance can be a cost-effective tool for achieving the EU’s ambitious pesticide objectives.
JEL codes
- C99: Other
- D81: Criteria for Decision-Making under Risk and Uncertainty
- Q14: Agricultural Finance
- Q18: Agricultural Policy • Food Policy
Reference
Marianne Lefebvre, Yann Raineau, Cécile Aubert, Pauline Pedehour, Niklas Möhring, and Marc Raynal, “Green Insurance for Pesticide Reduction: Acceptability and Impact for French Viticulture”, European Review of Agricultural Economics, vol. 51, n. 5, December 2024, p. 1201–1272.
Published in
European Review of Agricultural Economics, vol. 51, n. 5, December 2024, p. 1201–1272