Willingness to Pay for Crop Insurance to Adapt Flood Risk by Malaysian Farmers: An Empirical Investigation of Kedah

Rafia Afroz, Rulia Akhtar and Puteri Farhana
Additional contact information
Rafia Afroz: Department of Economics, Faculty of Economics and Management Science, International Islamic University Malaysia, 50728 Kuala Lumpur, Malaysia
Rulia Akhtar: Department of Economics, Faculty of Economics and Management Science, International Islamic University Malaysia, 50728 Kuala Lumpur, Malaysia,
Puteri Farhana: Department of Economics, Faculty of Economics and Management Science, International Islamic University Malaysia, 50728 Kuala Lumpur, Malaysia

International Journal of Economics and Financial Issues, 2017, vol. 7, issue 4, 1-9

Abstract: This study examines the factors that may affect the willingness to pay (WTP) crop insurance by Malaysian rice farmers in Kedah, Malaysia, for the adaptation of flood risk. 350 farm households are selected and a structured questionnaire is used to elicit data from the respondents. The data are analyzed with descriptive statistics and logit regression model. The average WTP for monthly crop insurance premium by the respondents is MYR 48.15 for every RM 1000 coverage/ha/season. The significant variables influencing WTP crop insurance by the farmers are the age of household head, attending the training course, farm income, and experience and farm size. From the findings of this work, it is urged that to promote crop insurance in Malaysia, the government may require a strategic policy to convince the farmers of the credibility and reliability of insurance scheme by improving farmers' awareness and understanding of crop insurance through advertisement and training

Keywords: Willingness to Pay; Contingent Valuation Method; Crop Insurance; Logit Model; Flood Risk (search for similar items in EconPapers)
JEL-codes: G22 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.econjournals.com/index.php/ijefi/article/download/4355/pdf (application/pdf)
https://www.econjournals.com/index.php/ijefi/article/view/4355/pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2017-04-01

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().