Farmers’ Risk Preferences and Agricultural Weather Index Insurance Uptake in Rural China

Jianjun Jin; Wenyu Wang; Xiaomin Wang

doi:10.1007/s13753-016-0108-3

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Article Navigation > International Journal of Disaster Risk Science > 2016 > 7(4): 366-373

Jianjun Jin, Wenyu Wang, Xiaomin Wang. Farmers’ Risk Preferences and Agricultural Weather Index Insurance Uptake in Rural China[J]. International Journal of Disaster Risk Science, 2016, 7(4): 366-373. doi: 10.1007/s13753-016-0108-3

Citation:

Jianjun Jin, Wenyu Wang, Xiaomin Wang. Farmers’ Risk Preferences and Agricultural Weather Index Insurance Uptake in Rural China[J]. International Journal of Disaster Risk Science, 2016, 7(4): 366-373. doi: 10.1007/s13753-016-0108-3

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Farmers’ Risk Preferences and Agricultural Weather Index Insurance Uptake in Rural China

doi: 10.1007/s13753-016-0108-3

College of Resources Science and Technology, Beijing Normal University, Beijing 100875, China

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We would like to thank the National Natural Science Fund (project 41671170) and the Economy and Environment Program for Southeast Asia (EEPSEA) for providing financial support. We would also like to thank Dr. Herminia Francisco, Dr. Pham Khanh Nam, and Prof. Jack Knetsch for their thoughtful comments and inputs. The authors also extend great gratitude to the anonymous reviewers for their helpful review and critical comments, which have led to significant improvement to the early version of the manuscript.

Available Online: 2021-04-26

Abstract

Abstract

The purpose of this study is to investigate the effect of farmers’ risk preferences on their decisions to purchase the agricultural weather index insurance based on the evidence from a household survey and field experiments conducted in Yongqiao District, Suzhou City of Anhui Province in China. Our empirical results show that farmers’ risk aversion significantly increases the probability of their decision to buy weather index-based crop insurance. Other factors that significantly influence weather index insurance participation decisions include farmers’ subjective beliefs on the probability of crop losses, farming experience, education level, farm size, and their household income. The empirical results of this study can provide helpful insights for policymakers and local insurers to further improve farmers’ participation in weather index-based crop insurance.
- China,
- Farmers’ risk aversion,
- Risk preference,
- Weather index insurance

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References(50)

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