A Research Paradigm of Weather Index Insurance for Grassland Animal Husbandry: A Pathway to Increased Income for Herders in China’s Inner Mongolia

Gong Yufei, Muhammad Umer Arshad, Guo Xinya, Zhang Xuguang and Zhao Yuanfeng

SAGE Open, 2024, vol. 14, issue 2, 21582440241255214

Abstract: This paper aims to theoretically and empirically test whether the Weather Index Insurance for Mutton Sheep (WIMS) which protects the herders from increased feeding costs resulting from drought and snow disasters promotes the income of herders in China’s Inner Mongolia or not. We have applied the OLS, PSM, and quantile regression models using field survey data from 261 herders in Xilin Gol, Inner Mongolia Autonomous Region for our objective. The findings demonstrate that the WIMS significantly increases the overall and high-income herders’ income, but has no significant effect on herders’ income at other income levels.. According to the results, we recommend that as the subsidized agricultural insurance product, the government should expand the pilot region of WIMS to furtherly test its income effect and consider reducing or exempting insurance premiums for low-income herders to reduce their financial pressure.

Keywords: weather index insurance; income effect; OLS; PSM; quantile regression (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/21582440241255214 (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:sae:sagope:v:14:y:2024:i:2:p:21582440241255214

DOI: 10.1177/21582440241255214

Access Statistics for this article

More articles in SAGE Open
Bibliographic data for series maintained by SAGE Publications ().