DOES POLICY-SUPPORTED AGRICULTURAL INSURANCE REDUCE NON-POINT SOURCE POLLUTION? EVIDENCE FROM CHINA

摘要

Based on the exogenous impact of the gradual pilot program of policy-supported agricultural insurance in China implemented in 2007 and using the panel data of provinces in China from 2006 to 2015, this study quantitatively analyzed the impact of policy-supported agricultural insurance on the amount of agricultural fertilizers used in China by adopting the identification method of difference-in-difference (DID). The results showed that the implementation of policy-supported agricultural insurance significantly reduced the amount of agricultural fertilizers used and non-point source pollution in China. This effect is significantly lagged, which was further confirmed by the robustness test.