Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/240222 
Year of Publication: 
2018
Citation: 
[Journal:] Agricultural and Food Economics [ISSN:] 2193-7532 [Volume:] 6 [Issue:] 1 [Publisher:] Springer [Place:] Heidelberg [Year:] 2018 [Pages:] 1-20
Publisher: 
Springer, Heidelberg
Abstract: 
Weather index-based crop insurance is increasingly becoming important as a risk mitigation strategy that farmers may use to mitigate adverse climate shocks and natural disasters encountered during farming. While Europe, North America, and Asia account for 20.1%, 55%, and 19.5% of the total agricultural insurance premium worldwide, respectively, Africa accounts for only 0.5% of the world insurance industry. One of the key reasons advanced against the low index insurance participation rate in Africa is the failure to involve farm households at the initial conceptualization and design of pilot initiatives. Therefore, the main purpose of this paper is to design an improved participatory methodology that could help elicit information on the value placed by farm households in Southwestern Burkina Faso on a new weather index-based crop insurance management initiative. A key concept in the improved participatory methodology is that of the willingness to pay (WTP) of farm households for the scheme. Knowledge of the maximum amount that farmers are willing to pay for the scheme can help insurance policy providers and public policy makers to design and put in place measures that sustain index insurance schemes in a developing country context and improve welfare among participating farmers.
Subjects: 
Climate change
Agricultural risk
Adaptation strategy
Weather index-based crop insurance
Contingent valuation method
Willingness to pay
Heckman 2-step estimator
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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