Climate change skepticism and index versus standard crop insurance demand in coastal Bangladesh
This paper investigates if climate change skepticism, farmers’ fatalistic beliefs, and insurance plan design influence interest in crop weather insurance. While studies of the influence of fatalism on disaster preparedness are common, the ways in which fatalism influences climate change skepticism, and in turn affects farmers’ interest in crop insurance, have not been previously investigated. An additional objective was to understand farmers’ preferences for index versus standard insurance options, the former entailing damage compensation based on post-hazard assessment, the latter tying damage compensation to a set of weather parameter thresholds. A discrete choice experiment was conducted with maize farmers on a climate-risk prone island in coastal Bangladesh. Most farmers were insurance averse. Those who chose insurance were however significantly more likely to select standard as opposed to index-based insurance. Insurance demand was significantly and positively correlated with farmers’ concern about the adverse livelihood impacts of climate change. Farmers who exhibited fatalistic views regarding the consequences of climate change were significantly less likely to opt for insurance of either kind. These findings imply that the prospect for farmers’ investment in insurance is conditioned by their understanding of climate change risks and the utility of adaptation, in addition to insurance scheme design.
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Format: | Article biblioteca |
Language: | English |
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Springer Verlag
2017
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Subjects: | AGRICULTURAL SCIENCES AND BIOTECHNOLOGY, Weather Index Insurance, Skepticism, Choice Experiment, CLIMATE CHANGE ADAPTATION, MAIZE, AGRICULTURAL INSURANCE, DISASTER PREPAREDNESS, FARMERS' ATTITUDES, |
Online Access: | http://hdl.handle.net/10883/18868 |
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dig-cimmyt-10883-188682021-02-09T18:24:43Z Climate change skepticism and index versus standard crop insurance demand in coastal Bangladesh Akter, S. Krupnik, T.J. Khanam, F. AGRICULTURAL SCIENCES AND BIOTECHNOLOGY Weather Index Insurance Skepticism Choice Experiment CLIMATE CHANGE ADAPTATION MAIZE AGRICULTURAL INSURANCE DISASTER PREPAREDNESS FARMERS' ATTITUDES This paper investigates if climate change skepticism, farmers’ fatalistic beliefs, and insurance plan design influence interest in crop weather insurance. While studies of the influence of fatalism on disaster preparedness are common, the ways in which fatalism influences climate change skepticism, and in turn affects farmers’ interest in crop insurance, have not been previously investigated. An additional objective was to understand farmers’ preferences for index versus standard insurance options, the former entailing damage compensation based on post-hazard assessment, the latter tying damage compensation to a set of weather parameter thresholds. A discrete choice experiment was conducted with maize farmers on a climate-risk prone island in coastal Bangladesh. Most farmers were insurance averse. Those who chose insurance were however significantly more likely to select standard as opposed to index-based insurance. Insurance demand was significantly and positively correlated with farmers’ concern about the adverse livelihood impacts of climate change. Farmers who exhibited fatalistic views regarding the consequences of climate change were significantly less likely to opt for insurance of either kind. These findings imply that the prospect for farmers’ investment in insurance is conditioned by their understanding of climate change risks and the utility of adaptation, in addition to insurance scheme design. 2455-2466 2017-08-23T15:41:22Z 2017-08-23T15:41:22Z 2017 Article http://hdl.handle.net/10883/18868 10.1007/s10113-017-1174-9 English https://static-content.springer.com/esm/art%3A10.1007%2Fs10113-017-1174-9/MediaObjects/10113_2017_1174_MOESM1_ESM.docx CIMMYT manages Intellectual Assets as International Public Goods. The user is free to download, print, store and share this work. In case you want to translate or create any other derivative work and share or distribute such translation/derivative work, please contact CIMMYT-Knowledge-Center@cgiar.org indicating the work you want to use and the kind of use you intend; CIMMYT will contact you with the suitable license for that purpose. Open Access PDF BANGLADESH Heidelberg, Germany Springer Verlag 8 17 Regional Environmental Change |
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AGRICULTURAL SCIENCES AND BIOTECHNOLOGY Weather Index Insurance Skepticism Choice Experiment CLIMATE CHANGE ADAPTATION MAIZE AGRICULTURAL INSURANCE DISASTER PREPAREDNESS FARMERS' ATTITUDES AGRICULTURAL SCIENCES AND BIOTECHNOLOGY Weather Index Insurance Skepticism Choice Experiment CLIMATE CHANGE ADAPTATION MAIZE AGRICULTURAL INSURANCE DISASTER PREPAREDNESS FARMERS' ATTITUDES |
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AGRICULTURAL SCIENCES AND BIOTECHNOLOGY Weather Index Insurance Skepticism Choice Experiment CLIMATE CHANGE ADAPTATION MAIZE AGRICULTURAL INSURANCE DISASTER PREPAREDNESS FARMERS' ATTITUDES AGRICULTURAL SCIENCES AND BIOTECHNOLOGY Weather Index Insurance Skepticism Choice Experiment CLIMATE CHANGE ADAPTATION MAIZE AGRICULTURAL INSURANCE DISASTER PREPAREDNESS FARMERS' ATTITUDES Akter, S. Krupnik, T.J. Khanam, F. Climate change skepticism and index versus standard crop insurance demand in coastal Bangladesh |
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This paper investigates if climate change skepticism, farmers’ fatalistic beliefs, and insurance plan design influence interest in crop weather insurance. While studies of the influence of fatalism on disaster preparedness are common, the ways in which fatalism influences climate change skepticism, and in turn affects farmers’ interest in crop insurance, have not been previously investigated. An additional objective was to understand farmers’ preferences for index versus standard insurance options, the former entailing damage compensation based on post-hazard assessment, the latter tying damage compensation to a set of weather parameter thresholds. A discrete choice experiment was conducted with maize farmers on a climate-risk prone island in coastal Bangladesh. Most farmers were insurance averse. Those who chose insurance were however significantly more likely to select standard as opposed to index-based insurance. Insurance demand was significantly and positively correlated with farmers’ concern about the adverse livelihood impacts of climate change. Farmers who exhibited fatalistic views regarding the consequences of climate change were significantly less likely to opt for insurance of either kind. These findings imply that the prospect for farmers’ investment in insurance is conditioned by their understanding of climate change risks and the utility of adaptation, in addition to insurance scheme design. |
format |
Article |
topic_facet |
AGRICULTURAL SCIENCES AND BIOTECHNOLOGY Weather Index Insurance Skepticism Choice Experiment CLIMATE CHANGE ADAPTATION MAIZE AGRICULTURAL INSURANCE DISASTER PREPAREDNESS FARMERS' ATTITUDES |
author |
Akter, S. Krupnik, T.J. Khanam, F. |
author_facet |
Akter, S. Krupnik, T.J. Khanam, F. |
author_sort |
Akter, S. |
title |
Climate change skepticism and index versus standard crop insurance demand in coastal Bangladesh |
title_short |
Climate change skepticism and index versus standard crop insurance demand in coastal Bangladesh |
title_full |
Climate change skepticism and index versus standard crop insurance demand in coastal Bangladesh |
title_fullStr |
Climate change skepticism and index versus standard crop insurance demand in coastal Bangladesh |
title_full_unstemmed |
Climate change skepticism and index versus standard crop insurance demand in coastal Bangladesh |
title_sort |
climate change skepticism and index versus standard crop insurance demand in coastal bangladesh |
publisher |
Springer Verlag |
publishDate |
2017 |
url |
http://hdl.handle.net/10883/18868 |
work_keys_str_mv |
AT akters climatechangeskepticismandindexversusstandardcropinsurancedemandincoastalbangladesh AT krupniktj climatechangeskepticismandindexversusstandardcropinsurancedemandincoastalbangladesh AT khanamf climatechangeskepticismandindexversusstandardcropinsurancedemandincoastalbangladesh |
_version_ |
1756086679065591808 |