Disposition à payer pour l’assurance contre les risques naturels: une étude de terrain au Burkina Faso

Guibril Zerbo

No 2024-7, EconomiX Working Papers from University of Paris Nanterre, EconomiX

Abstract: This article examines the determinants of willingness to pay (WTP) for flood insurance, focusing on the role of information and information sources. We use data from a September 2022 field survey of 593 individuals in urban Burkina Faso. We find that 71.3% of individuals are willing to spend money on insurance. But many individuals have a lower willingness to pay than the expected loss. This suggests that individuals would appreciate insurance cover, but do not have sufficient income to pay the insurance premium. We also find that being well informed about flood risk increases the likelihood of paying the expected loss for insurance. However, obtaining flood information from television increases WTP whereas radio does not. These results suggest the need to take information sources into account when developing effective communication policies against these risks. Another result is that recourse to the family and risk aversion reduce PAD. Finally, trust in insurers and ambiguity aversion increase individuals' chances of paying the expected loss for insurance.

Keywords: Natural disasters, Flood risk; Insurance, Willingness to pay; Information (search for similar items in EconPapers)
JEL-codes: D81 D83 G22 Q54 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2024
New Economics Papers: this item is included in nep-agr, nep-dcm, nep-env and nep-upt
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Persistent link: https://EconPapers.repec.org/RePEc:drm:wpaper:2024-7

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