Extreme Weather, agricultural insurance and farmer's climate adaptation technologies adoption in China

Hui Mao, Zhenkai Sun, Anyuan Chai, Lan Fang and Chaoqian Shi

Ecological Economics, 2025, vol. 228, issue C

Abstract: We explore how farmers adjust their climate adaptation behaviors and participation in agricultural insurance in response to extreme weather events. A random effects model is constructed to clarify the relationships between extreme weather events, agricultural insurance and climate adaptation technologies (CAT). Using survey data from 622 farmers in China, Probit models and instrumental variable analysis show that extreme weather events significantly increase farmers' adoption of CAT and their participation in agricultural insurance. Furthermore, agricultural insurance significantly promotes farmers' adoption of CAT. Agricultural insurance influences the adoption of CAT through both substitutive and complementary effects, the complementary effects are more pronounced. Therefore, we recommended the continued promotion of CAT and agricultural insurance to strengthen farmers' resilience to extreme weather events.

Keywords: Climate change; Extreme weather; Agricultural insurance; Climate adaptation technologies (search for similar items in EconPapers)
JEL-codes: C93 G22 Q16 Q54 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:228:y:2025:i:c:s0921800924003537

DOI: 10.1016/j.ecolecon.2024.108456

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