摘要：A partial equilibrium model of stochastic crop production is used to analyzethe environmental impacts of popular subsidized crop insurance programs. Landuse is unchanged only when an actuarially fair, perfectly separating insurancecontract is o.ered. For the more typical po oling equilibrium contracts, however,land with a minimum quality that is stricly lower than the minimum qualitywithout insurance will be added to production. In such cases, the environmentwill be adversely e.ected. If economically marginal land is also environmen-tally marginal, pooling crop insurance policies disproportionately contribute tothe degradation of the environment. Popular subsidies merely exacerbate theproblem.
