Are smallholder farmers willing to pay for different types of crop insurance? An application of labelled choice experiments to Chinese corn growers

H. Holly Wang, Lu Liu (), David Ortega, Yu Jiang and Qiujie Zheng
Additional contact information
H. Holly Wang: Guizhou University
Lu Liu: Institute of Agricultural Economics and Development, Chinese Academy of Agricultural Sciences
Yu Jiang: Zhejiang University

The Geneva Papers on Risk and Insurance - Issues and Practice, 2020, vol. 45, issue 1, No 5, 86-110

Abstract: Abstract Crop insurance is the most common agricultural risk management instrument. In developing countries, crop insurance is becoming popular but is often provided with lower coverage, lower premiums and less subsidy than in developed countries. We use a labelled choice experiment method to investigate Chinese smallholder corn growers’ preferences for alternative types of insurance. In addition to traditional yield insurance, we assess farmers’ willingness to pay for coverage levels in price, revenue and weather index insurance, which are currently at the experimental stage in China. We find farmer preferences for these various types of insurance to be heterogeneous. On average, farmers are willing to pay for all types of insurance and for additional coverage but only at the current high subsidy level. We explore heterogeneity in willingness to pay and find that farmers’ positive past insurance experience plays a very important role in their demand for insurance.

Keywords: Crop yield insurance; Weather index insurance; Revenue insurance; Price insurance; Labelled choice experiment; Willingness to pay (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://link.springer.com/10.1057/s41288-019-00153-7 Abstract (text/html)
Access to full text is restricted to subscribers.

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:pal:gpprii:v:45:y:2020:i:1:d:10.1057_s41288-019-00153-7

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/41288/PS2

DOI: 10.1057/s41288-019-00153-7

Access Statistics for this article

The Geneva Papers on Risk and Insurance - Issues and Practice is currently edited by Christophe Courbage

More articles in The Geneva Papers on Risk and Insurance - Issues and Practice from Palgrave Macmillan, The Geneva Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().