EconPapers    
Economics at your fingertips  
 

Anything left for animal disease insurance? A choice experiment approach

Jaakko Heikkilä, Jarkko K. Niemi (), Katriina Heinola, Eero Liski and Sami Myyrä
Additional contact information
Jaakko Heikkilä: Natural Resources Institute Finland (Luke)
Jarkko K. Niemi: Natural Resources Institute Finland (Luke)
Katriina Heinola: Natural Resources Institute Finland (Luke)
Eero Liski: Natural Resources Institute Finland (Luke)
Sami Myyrä: Natural Resources Institute Finland (Luke)

Review of Agricultural, Food and Environmental Studies, 2016, vol. 97, issue 4, 237-249

Abstract: Abstract Animal disease insurance plays only a minor role in public activities related to animal diseases in animal production in Europe, and the current situation is likely to persist as long as producers place strong faith on public compensation schemes. In this study, we undertook a farm survey in Finland employing a choice experiment to study the willingness to pay for animal disease insurance products. We found that producers’ willingness to pay for animal disease insurance is relatively low, even if consequential losses are covered. However, attributes of the insurance products which increased the likelihood of the producer wishing to purchase the product in a statistically significant manner were identified. The most important attribute was a low deductible. Using latent class analysis, four classes of producers were identified, those who were (1) not interested, (2) weakly interested or (3) strongly interested in insurance, and additionally, (4) a group who emphasised biosecurity measures but was not willing to purchase insurance. Those primarily interested in insurance were typically young, well-educated producers from large farms, and they already had a good level of biosecurity on their farms. However, the majority of the respondents preferred not to purchase insurance. The analysis suggests that commercial production animal disease insurance may need to be subsidised or otherwise made more attractive to producers, and even so, many producers might consider it unnecessary.

Keywords: Insurance; Animal disease; Choice experiment; Questionnaire; Latent class (search for similar items in EconPapers)
JEL-codes: G22 Q12 Q16 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s41130-016-0021-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:roafes:v:97:y:2016:i:4:d:10.1007_s41130-016-0021-6

Ordering information: This journal article can be ordered from
https://www.springer ... nomics/journal/41130

Access Statistics for this article

Review of Agricultural, Food and Environmental Studies is currently edited by Stephan Marette and Ronan Le Velly

More articles in Review of Agricultural, Food and Environmental Studies from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-11-06
Handle: RePEc:spr:roafes:v:97:y:2016:i:4:d:10.1007_s41130-016-0021-6