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Global crop insurance promotes agricultural production but challenges environmental sustainability
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DOI：10.1016/j.resconrec.2026.109099.png)
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Abstract
En 中文
Crop insurance (CI) is a key risk governance tool, yet its global impact on environmental sustainability remains unclear. Using a 2000–2019 panel of 69 countries, we analyzed CI's dual impacts on agricultural production and nutrient surpluses. The results reveal that CI significantly increased maize, potatoes, rice, and wheat production, but also stimulated fertilizer inputs, generating net nitrogen and phosphorus surpluses (ΔNS, ΔPS) in most countries. Regionally, nitrogen fertilizer responded to CI with an inverted U‑shape in consuming areas and a nonlinear plateau in producing areas; for phosphorus, an inverted U‑shape appeared in both groups. Notably, Canada, China, and the United States of America exhibited declining and occasionally negative CI-induced ΔPS in recent years, suggesting that strong nutrient governance can partially offset insurance-induced intensification. These findings highlight the need for region-specific policies that explicitly link CI to measurable nutrient-management actions and address moral hazard, thereby aligning risk governance with environmental sustainability.
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