Author(s)

Wang Peirong ¹

Affiliation(s)

¹ Institute of Food and Strategic Reserves, Nanjing University of Finance and Economics, Nanjing, 210003, China

Corresponding Author

Wang Peirong

ABSTRACT

In 2007, China fully implemented policy-based agricultural insurance with premium subsidies from the central government and selected 6 provinces for pilots. By 2012, it had been fully implemented in 31 provinces and cities across the country. As a quasi-public good, Policy-based agricultural insurance has double positive externalities. In view of the impact of policy-based agricultural insurance on farmers' welfare, this article adopts a multi-time point double-difference model, using farmers' operating disposable income as the measure of farmers' welfare, and using 31 data from 2000 to 2022. An empirical study using panel data from provinces (municipalities and autonomous regions) found that policy-based agricultural insurance can help improve farmers' welfare, and the implementation of policy-based agricultural insurance can increase rural residents' operational disposable income by an average of 7.4%.

KEYWORDS

Policy agricultural insurance; farmers' welfare; multi-time point difference-in-difference model

CITE THIS PAPER

Wang Peirong, Analysis on the Welfare Effect of Policy Agricultural Insurance. Financial Engineering and Risk Management (2024) Vol. 7: 15-26. DOI: http://dx.doi.org/10.23977/ferm.2024.070303.

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