Subjective and objective risk perceptions and the willingness to pay for agricultural insurance: evidence from an in-the-field choice experiment in rural China

Hong Fu, Yuehua Zhang, Yinuo An, Li Zhou, Yanling Peng, Rong Kong and Calum Turvey
Additional contact information
Hong Fu: Shandong University of Finance and Economics
Yuehua Zhang: Zhejiang University
Yinuo An: Cornell University
Li Zhou: Nanjing Agricultural University
Yanling Peng: Sichuan Agricultural University
Rong Kong: Northwest Agriculture and Forestry University

The Geneva Risk and Insurance Review, 2022, vol. 47, issue 1, No 6, 98-121

Abstract: Abstract We conducted in-the-field choice experiments in China to investigate farmers’ willingness to pay for crop insurance and to determine how objective and subjective beliefs affect Willingness to Pay (WTP). We deploy three variants of the choice experiment using a priming mechanism on objective and subjective beliefs plus a control. We find that the cuing frame matters in that there are differences in WTP within five attributes and across variants. In terms of practical policy, our results suggest that farmers’ frame of reference toward objective and subjective risks can affect insurance demand.

Keywords: Agricultural insurance; Choice experiments; Subjective and objective risk; Risk perception; China (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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DOI: 10.1057/s10713-021-00071-6

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