Crop Insurance as a Strategy for Adapting to Climate Change
利用意大利农场面板数据，研究发现气候变化会提高作物保险需求，保险能降低风险暴露，但种植多种作物的农场更少购买保险，说明作物多样化可替代保险。
Abstract Financial insurance for extreme events can play an important role in hedging against the implications of climate change. This paper combines a comprehensive estimation strategy and a unique panel dataset to study the role of financial insurance in farmers' welfare under uncertainty. Data are drawn from a large Italian farm panel dataset. We find that (i) demand for insurance products is likely to increase in response to climatic conditions, and (ii) that the use of insurance reduces the extent of risk exposure. We also find that farms growing more crops are less likely to adopt the insurance scheme. This confirms what is found in the theoretical literature. Crop diversification can be a substitute for financial insurance in hedging against the impact of risk exposure on welfare.