Willingness to Pay for Weather-Indexed Insurance: Evidence from Cambodian Rice Farmers
This study examines Cambodian rice farmers’ willingness to pay for the weather-indexed insurance (WII) proposed to manage the financial impact of shifting monsoon rainfall patterns in Battambang Province in north-western Cambodia. Detailed interviews are conducted in the districts of Bavel and Thma...
| Main Authors: | , , , , , , |
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| Format: | Journal Article |
| Language: | Inglés |
| Published: |
MDPI
2022
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/126959 |
| _version_ | 1855541794130886656 |
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| author | Wang, Qingxia Soksophors, Yim Barlis, Angelica Mushtaq, Shahbaz Phanna, Khieng Swaans, Cornelis P.M. Rodulfo, Danny |
| author_browse | Barlis, Angelica Mushtaq, Shahbaz Phanna, Khieng Rodulfo, Danny Soksophors, Yim Swaans, Cornelis P.M. Wang, Qingxia |
| author_facet | Wang, Qingxia Soksophors, Yim Barlis, Angelica Mushtaq, Shahbaz Phanna, Khieng Swaans, Cornelis P.M. Rodulfo, Danny |
| author_sort | Wang, Qingxia |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This study examines Cambodian rice farmers’ willingness to pay for the weather-indexed insurance (WII) proposed to manage the financial impact of shifting monsoon rainfall patterns in Battambang Province in north-western Cambodia. Detailed interviews are conducted in the districts of Bavel and Thma Koul. We first analyse farmer respondents’ socioeconomic and demographic characteristics, climate change perceptions and experience, risk attitudes, and awareness of insurance. The binary logistic model is used to identify factors that significantly impact farmers’ willingness to pay (WTP) for WII. Our results show that farmers in general had lower awareness of how to use innovative financial products to adapt to extreme weather. The results also demonstrate that farmer respondents’ marital status, the number of off-farm labourers, and the farm size have a positive effect, whereas the number of children in the household has a negative effect on farmers’ WTP for WII. Specifically, being married, an increase of one off-farm labourer, and an increase of one hectare (ha) of farmland increase the probability of demand for WII by 38.6%, 21.4%, and 5.1%, respectively. In contrast, an increase of one child reduces the probability of WII demand by 9.7%. We also identify challenges confronted by Cambodian farmers for participating in the proposed WII scheme and provide relevant recommendations to overcome these challenges. |
| format | Journal Article |
| id | CGSpace126959 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2022 |
| publishDateRange | 2022 |
| publishDateSort | 2022 |
| publisher | MDPI |
| publisherStr | MDPI |
| record_format | dspace |
| spelling | CGSpace1269592025-12-08T10:29:22Z Willingness to Pay for Weather-Indexed Insurance: Evidence from Cambodian Rice Farmers Wang, Qingxia Soksophors, Yim Barlis, Angelica Mushtaq, Shahbaz Phanna, Khieng Swaans, Cornelis P.M. Rodulfo, Danny climate change food systems deltas This study examines Cambodian rice farmers’ willingness to pay for the weather-indexed insurance (WII) proposed to manage the financial impact of shifting monsoon rainfall patterns in Battambang Province in north-western Cambodia. Detailed interviews are conducted in the districts of Bavel and Thma Koul. We first analyse farmer respondents’ socioeconomic and demographic characteristics, climate change perceptions and experience, risk attitudes, and awareness of insurance. The binary logistic model is used to identify factors that significantly impact farmers’ willingness to pay (WTP) for WII. Our results show that farmers in general had lower awareness of how to use innovative financial products to adapt to extreme weather. The results also demonstrate that farmer respondents’ marital status, the number of off-farm labourers, and the farm size have a positive effect, whereas the number of children in the household has a negative effect on farmers’ WTP for WII. Specifically, being married, an increase of one off-farm labourer, and an increase of one hectare (ha) of farmland increase the probability of demand for WII by 38.6%, 21.4%, and 5.1%, respectively. In contrast, an increase of one child reduces the probability of WII demand by 9.7%. We also identify challenges confronted by Cambodian farmers for participating in the proposed WII scheme and provide relevant recommendations to overcome these challenges. 2022-11-05 2023-01-12T11:41:47Z 2023-01-12T11:41:47Z Journal Article https://hdl.handle.net/10568/126959 en Open Access MDPI Wang, Q., Soksophors, Y., Barlis, A., Mushtaq, S., Phanna, K., Swaans, C. and Rodulfo, D. 2022. Willingness to Pay for Weather-Indexed Insurance: Evidence from Cambodian Rice Farmers. Sustainability 14(21):14558. https://doi.org/10.3390/su142114558 |
| spellingShingle | climate change food systems deltas Wang, Qingxia Soksophors, Yim Barlis, Angelica Mushtaq, Shahbaz Phanna, Khieng Swaans, Cornelis P.M. Rodulfo, Danny Willingness to Pay for Weather-Indexed Insurance: Evidence from Cambodian Rice Farmers |
| title | Willingness to Pay for Weather-Indexed Insurance: Evidence from Cambodian Rice Farmers |
| title_full | Willingness to Pay for Weather-Indexed Insurance: Evidence from Cambodian Rice Farmers |
| title_fullStr | Willingness to Pay for Weather-Indexed Insurance: Evidence from Cambodian Rice Farmers |
| title_full_unstemmed | Willingness to Pay for Weather-Indexed Insurance: Evidence from Cambodian Rice Farmers |
| title_short | Willingness to Pay for Weather-Indexed Insurance: Evidence from Cambodian Rice Farmers |
| title_sort | willingness to pay for weather indexed insurance evidence from cambodian rice farmers |
| topic | climate change food systems deltas |
| url | https://hdl.handle.net/10568/126959 |
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