Comparison of conservation instruments under long-run yield uncertainty and farmer risk aversion
研究了在长期产量不确定性和农民风险厌恶条件下，价格溢价、一次性补贴和绿色保险等保护性农业工具对农民采用可持续实践的影响，发现绿色保险在合理条件下更具成本效益。
Abstract Consumers and policymakers are increasingly concerned with environmental sustainability in food production. Yet rates of adoption of many conservation practices vary and are generally low. Existing instruments for practice adoption increase farmers’ expected net benefits from sustainable practices but do not manage associated risks which may be critical to risk-averse farmers. We build a model to characterize practice adoption by risk-averse farmers given practice-driven, long-run yield dynamics under various instruments, including price premiums, lump-sum subsidies and green insurance. We find rich scale and compositional effects that differ across instruments and that green insurance is significantly more cost-effective under plausible conditions.