Peer Effects on Farmers’ Purchases of Policy-Based Planting Farming Agricultural Insurance: Evidence from Sichuan Province, China

Xueling Bao, Fengwan Zhang, Shili Guo, Xin Deng, Jiahao Song and Dingde Xu
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Xueling Bao: College of Management, Sichuan Agricultural University, Chengdu 611130, China
Fengwan Zhang: College of Management, Sichuan Agricultural University, Chengdu 611130, China
Shili Guo: School of Economics, Southwestern University of Finance and Economics, Chengdu 610074, China
Xin Deng: College of Economics, Sichuan Agricultural University, Chengdu 611130, China
Jiahao Song: College of Management, Sichuan Agricultural University, Chengdu 611130, China
Dingde Xu: College of Management, Sichuan Agricultural University, Chengdu 611130, China

IJERPH, 2022, vol. 19, issue 12, 1-18

Abstract: The tendency to conform with peers, and learning by imitation, have become new influencing factors that affect farmers’ purchases of policy-based planting agricultural insurance. Based on the survey data of 540 farmers in Sichuan Province in 2021, this study empirically analyzed the impact of peer effects on farmers’ purchases of policy-based planting agricultural insurance and its mechanism. The results show that: (1) Regardless of whether farmers’ relatives and friends visit during the New Year period, the purchase of policy-based planting agricultural insurance by relatives and friends will positively and significantly affect the purchasing behavior of the farmers. (2) The impact of the peer effect on the behavior of farmers purchasing policy-based planting agricultural insurance is related to the relationship between the strengths and weaknesses. (3) The results of the mechanism analysis show that, through the mediating variables of social network and trust, the influence of the peer effect is weakened. (4) Heterogeneity analysis shows that farmers having a larger land scale and higher educational background are more influenced by the same peer effect. The results of the study emphasize the importance of the peer effect on the behavior of farmers purchasing policy-based planting agricultural insurance, and can provide a decision-making reference for the formulation of related policies.

Keywords: policy-based planting agricultural insurance; peer effect; mechanism analysis; Sichuan; China (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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