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

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 subj...

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Detalles Bibliográficos
Autores principales: Fu, Hong, Zhang, Yuehua, An, Yinuo, Zhou, Li, Peng, Yanling, Kong, Rong, Turvey, Calum G.
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Palgrave Macmillan UK 2021
Materias:
Original Article
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8524405/
https://www.ncbi.nlm.nih.gov/pubmed/34690612
http://dx.doi.org/10.1057/s10713-021-00071-6
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author Fu, Hong
Zhang, Yuehua
An, Yinuo
Zhou, Li
Peng, Yanling
Kong, Rong
Turvey, Calum G.
author_facet Fu, Hong
Zhang, Yuehua
An, Yinuo
Zhou, Li
Peng, Yanling
Kong, Rong
Turvey, Calum G.
author_sort Fu, Hong
collection PubMed
description 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.
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spelling pubmed-85244052021-10-20 Subjective and objective risk perceptions and the willingness to pay for agricultural insurance: evidence from an in-the-field choice experiment in rural China Fu, Hong Zhang, Yuehua An, Yinuo Zhou, Li Peng, Yanling Kong, Rong Turvey, Calum G. Geneva Risk Insur Rev Original Article 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. Palgrave Macmillan UK 2021-10-19 2022 /pmc/articles/PMC8524405/ /pubmed/34690612 http://dx.doi.org/10.1057/s10713-021-00071-6 Text en © International Association for the Study of Insurance Economics 2021 This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic.
spellingShingle Original Article
Fu, Hong
Zhang, Yuehua
An, Yinuo
Zhou, Li
Peng, Yanling
Kong, Rong
Turvey, Calum G.
Subjective and objective risk perceptions and the willingness to pay for agricultural insurance: evidence from an in-the-field choice experiment in rural China
title Subjective and objective risk perceptions and the willingness to pay for agricultural insurance: evidence from an in-the-field choice experiment in rural China
title_full Subjective and objective risk perceptions and the willingness to pay for agricultural insurance: evidence from an in-the-field choice experiment in rural China
title_fullStr Subjective and objective risk perceptions and the willingness to pay for agricultural insurance: evidence from an in-the-field choice experiment in rural China
title_full_unstemmed Subjective and objective risk perceptions and the willingness to pay for agricultural insurance: evidence from an in-the-field choice experiment in rural China
title_short Subjective and objective risk perceptions and the willingness to pay for agricultural insurance: evidence from an in-the-field choice experiment in rural China
title_sort subjective and objective risk perceptions and the willingness to pay for agricultural insurance: evidence from an in-the-field choice experiment in rural china
topic Original Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8524405/
https://www.ncbi.nlm.nih.gov/pubmed/34690612
http://dx.doi.org/10.1057/s10713-021-00071-6
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