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Nutrient Best Management Practice Insurance and Farmer Perceptions of Adoption Risk AgEcon
Mitchell, Paul D..
This paper explores the effect farmer perceptions concerning how best management practice (BMP) adoption changes the profit distribution have on BMP adoption incentives and the potential for insurance to increase these incentives. Adoption indifference curves illustrate the effect of farmer perceptions on BMP adoption incentives and the potential for insurance to expand the set of perceptions consistent with adoption. Empirical analysis quantifies these conceptual results for nutrient BMP insurance, a new policy available to corn farmers as part of a USDA-Risk Management Agency pilot program in four states. Results indicate that nutrient BMP insurance can have economically relevant effects on farmer adoption incentives.
Tipo: Journal Article Palavras-chave: Adoption indifference curves; Crop insurance; Fertilizer; Green insurance; D8; Q12; Q16; Q21.
Ano: 2004 URL: http://purl.umn.edu/43460
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Some Simulation Results for a Green Insurance Mechanism AgEcon
Baerenklau, Kenneth A..
This analysis extends previous work on green insurance by proposing a mechanism that offers a stronger adoption incentive and is applicable to heterogeneous populations and non-binary adoption decisions. Endogenous learning about the new technology is incorporated, and empirically calibrated simulation results are presented for the case of reduced-phosphorus dairy diets. Results show that the mechanism has a significant impact on behavior and may incur no net cost for the regulator when an insurance premium is charged. Conditions under which a green payment mechanism may be preferable to green insurance also are discussed.
Tipo: Journal Article Palavras-chave: Conservation technology adoption; Dairy farming; Endogenous learning; Green insurance; Phosphorus; Risk preferences; Voluntary programs; Environmental Economics and Policy.
Ano: 2005 URL: http://purl.umn.edu/30787
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