What drives the willingness to pay for crop insurance against extreme weather events (flood and drought) in Pakistan? A hypothetical market approach

Arshad, Muhammad Umair; Amjath-Babu, T.S.; Kächele, Harald; Müller, Klaus

doi:10.1080/17565529.2015.1034232

Cited by 92 publications

(39 citation statements)

References 31 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…According to the findings of [24], CC may have a bad impact on farm outcomes and negative effects on food crops, and these results are validated by another study by [29]. A study by [30] quantified the influence of CC on the livelihood of rural households and their findings revealed that farmers, who are primarily dependent on the fruit production, are facing a decline in the farm outcomes due to climate variations and noted that extreme weather occurrences are varying the intensity in Pakistan for current and future climate scenarios. The study by [31] concluded that in general, CC is damaging the productivity of the crop of marginal growers.…”

Section: Introductionmentioning

confidence: 67%

Synergy between adaptations and resilience of livelihood from climate change vulnerability: A group-wise comparison of adapters and non-adapters

Naqvi

Hassan

et al. 2020

PLoS ONE

View full text Add to dashboard Cite

The similarities, differences, and contradictions regarding climate change adaptation and resilience by academics and practitioners have already been documented. It is the need of time to set new precedence by observing the adaptations and resilience as tools to respond to the climate variations. This study analyzed the influence of climate change adaptations and synergy between resilience from livelihood vulnerability and adaptations. A field survey of 489 farming households is conducted with the help of a well-structured questionnaire from four districts of the south part of Punjab province of Pakistan. This study uses the Endogenous Switching Regression model for the sake of analysis. The outcomes of the study reveal that age, education, family size, total land, and seed price have significant linkage with the adoption of adaptations. The synergistic effects of adaptation and resilience are also visible here as the adaptations factors are significantly contributing towards yield, per capita income, poverty, and poverty gap of the respondents. This study suggests the provision of proper education and smart technology to help in enhancing the adaptive capacity of farmers. More imperatively, adaptations to climate variations can be concluded as a remedial tool for resilient livelihood. It is believed that the present study can be considered as a guide for future research on other regions of Pakistan and neighboring countries.

show abstract

Section: Introductionmentioning

confidence: 67%

Synergy between adaptations and resilience of livelihood from climate change vulnerability: A group-wise comparison of adapters and non-adapters

Naqvi

Hassan

et al. 2020

PLoS ONE

View full text Add to dashboard Cite

show abstract

“…In Pakistan a number of researchers (for instance, Hanif et al, 2010;Rasul et al, 2012;Zhu et al, 2013) have examined the effects of climate change on agriculture. Additionally, several previous studies on adaptation of agriculture to climate change in Pakistan (for example, Ali and Erenstein, 2017;Abid et al, 2018Abid et al, & 2017Arshad et al, 2016Arshad et al, , 2017Gorst et al, 2015). The available literature has reported that there limited adaptation of climate change at farm level and emphasized the need for more research to examine the factors affecting local understanding of climate change and adaptation behavior.…”

Section: Introductionmentioning

confidence: 99%

Climate Change Impact On Rice Production in Pakistan: An ARDL-Bounds Testing Approach to Cointegration

Chandio¹,

Jiang²,

Magsi³

2018

Preprint

View full text Add to dashboard Cite

This research paper aims to examine the relationship between CO2, temperature, area, fertilizers and rice production in Pakistan. This study used Augmented Dickey Fuller (ADF) and Phillips Perron (PP) unit root tests to check the order of integration of each variable. The cointegration analysis with ARDL bounds testing approach is used to examine the impact of climate change on rice production in Pakistan over time series data from the period 1968 to 2014. The parameter stability test of the model is also checked at the end. The results of estimation show that the important variables of the study are cointegrated demonstrating the presence of long-run association among them. Furthermore, climate change factors, e.g. CO2 and temperature have a long-run and short-run positive effect on the production of rice in Pakistan. This present work is original and it is first time empirically tested the impact of climate change on rice production in Pakistan. The annual time series data of 47 years enhances the validity of the empirical findings. The most fruitful finding of this research is that rice production in Pakistan is positively influenced by emission of carbon dioxide (CO2) at 5 percent significance level in both long-run and short-run.

show abstract

“…This helped reveal that access to credit, irrigation, exposure to adverse weather events, and other socio-economic constraints affected farmers' insurance demand. Arshad et al (2016) performed a double-bound dichotomous choice CVM to elicit WTP in a hypothetical insurance market for two extreme weather events: floods and droughts. The experimental sample consisted of 240 farmers from across 12 agro-climatic zones of Pakistan.…”

Section: The Problem Of Insurance Demandmentioning

confidence: 99%

Demand for Crop Insurance in Developing Countries: New Evidence from India

Ghosh¹,

Gupta²,

Singh³

et al. 2020

J Agricultural Economics

View full text Add to dashboard Cite

Determining farmers’ real demand for crop insurance is difficult, especially in developing countries, where there is a lack of formal financial sector integration and a high reliance on informal risk mitigation options. We provide some new estimates of farmers’ willingness‐to‐pay for insurance in the context of a large‐scale subsidised programme in India. We conducted a discrete choice experiment with agricultural households across four states in India, enabling us to estimate preferences for specific insurance policy attributes such as coverage period, method of loss assessment, timing of indemnity payments and the cost of insurance. Our results suggest that farmers do value crop insurance under certain conditions and some are willing to pay a premium for such coverage in excess of the subsidised rates they are currently required to pay under this programme. In particular, farmers value the assurances that they will receive timely payouts when they incur losses, and may not have a strong preference for the method with which losses are assessed. On the other hand, farmers are quite sensitive to coverage periods. Our baseline assessment shows that when optimised to farmer requirements, there can be a sizeable demand for crop insurance by developing country farmers.

show abstract

What drives the willingness to pay for crop insurance against extreme weather events (flood and drought) in Pakistan? A hypothetical market approach

Cited by 92 publications

References 31 publications

Synergy between adaptations and resilience of livelihood from climate change vulnerability: A group-wise comparison of adapters and non-adapters

Synergy between adaptations and resilience of livelihood from climate change vulnerability: A group-wise comparison of adapters and non-adapters

Climate Change Impact On Rice Production in Pakistan: An ARDL-Bounds Testing Approach to Cointegration

Demand for Crop Insurance in Developing Countries: New Evidence from India

Contact Info

Product

Resources

About