Limits...
The influence of gender and product design on farmers' preferences for weather-indexed crop insurance.

Akter S, Krupnik TJ, Rossi F, Khanam F - Glob Environ Change (2016)

Bottom Line: Theoretically, weather-index insurance is an effective risk reduction option for small-scale farmers in low income countries.Renewed policy and donor emphasis on bridging gender gaps in development also emphasizes the potential social safety net benefits that weather-index insurance could bring to women farmers who are disproportionately vulnerable to climate change risk and have low adaptive capacity.Our results reveal significant insurance aversion among female farmers, irrespective of the attributes of the insurance scheme.

View Article: PubMed Central - PubMed

Affiliation: Lee Kuan Yew School of Public Policy, National University of Singapore, 469C Bukit Timah Road, 259772, Singapore; Social Sciences Division, International Rice Research Institute, Los Baños, Laguna 4031, Philippines.

ABSTRACT

Theoretically, weather-index insurance is an effective risk reduction option for small-scale farmers in low income countries. Renewed policy and donor emphasis on bridging gender gaps in development also emphasizes the potential social safety net benefits that weather-index insurance could bring to women farmers who are disproportionately vulnerable to climate change risk and have low adaptive capacity. To date, no quantitative studies have experimentally explored weather-index insurance preferences through a gender lens, and little information exists regarding gender-specific preferences for (and constraints to) smallholder investment in agricultural weather-index insurance. This study responds to this gap, and advances the understanding of preference heterogeneity for weather-index insurance by analysing data collected from 433 male and female farmers living on a climate change vulnerable coastal island in Bangladesh, where an increasing number of farmers are adopting maize as a potentially remunerative, but high-risk cash crop. We implemented a choice experiment designed to investigate farmers' valuations for, and trade-offs among, the key attributes of a hypothetical maize crop weather-index insurance program that offered different options for bundling insurance with financial saving mechanisms. Our results reveal significant insurance aversion among female farmers, irrespective of the attributes of the insurance scheme. Heterogeneity in insurance choices could however not be explained by differences in men's and women's risk and time preferences, or agency in making agriculturally related decisions. Rather, gendered differences in farmers' level of trust in insurance institutions and financial literacy were the key factors driving the heterogeneous preferences observed between men and women. Efforts to fulfill gender equity mandates in climate-smart agricultural development programs that rely on weather-index insurance as a risk-abatement tool are therefore likely to require a strengthening of institutional credibility, while coupling such interventions with financial literacy programs for female farmers.

No MeSH data available.


Related in: MedlinePlus

Example of a choice experiment question format shown to farmers (hail or windstorm crop damage).
© Copyright Policy - CC BY
Related In: Results  -  Collection

License
getmorefigures.php?uid=PMC4862443&req=5

fig0005: Example of a choice experiment question format shown to farmers (hail or windstorm crop damage).

Mentions: Following the procedures explained by Bliemer et al. (2008) for constructing a Bayesian efficient design (‘Db-optimal efficient design’), the CE design used for this study includes 24 choice combinations randomly divided into four blocks (six choice questions in each block); thus, each respondent was randomly presented with one of the four blocks. Each choice set included two ‘unlabeled’ or ‘generic’ options, plus an opt-out alternative (‘None’) representing the status quo (Fig. 1). Respondents were first introduced to the hypothetical scheme through a detailed scenario description (Appendix B in Supplementary material), followed by an explanation of the corresponding trigger levels. Only then were they presented with the choice sets. Enumerators also read a ‘cheap talk’ script (Appendix C in Supplementary material) to reduce hypothetical bias (Cummings and Taylor, 1999).


The influence of gender and product design on farmers' preferences for weather-indexed crop insurance.

Akter S, Krupnik TJ, Rossi F, Khanam F - Glob Environ Change (2016)

Example of a choice experiment question format shown to farmers (hail or windstorm crop damage).
© Copyright Policy - CC BY
Related In: Results  -  Collection

License
Show All Figures
getmorefigures.php?uid=PMC4862443&req=5

fig0005: Example of a choice experiment question format shown to farmers (hail or windstorm crop damage).
Mentions: Following the procedures explained by Bliemer et al. (2008) for constructing a Bayesian efficient design (‘Db-optimal efficient design’), the CE design used for this study includes 24 choice combinations randomly divided into four blocks (six choice questions in each block); thus, each respondent was randomly presented with one of the four blocks. Each choice set included two ‘unlabeled’ or ‘generic’ options, plus an opt-out alternative (‘None’) representing the status quo (Fig. 1). Respondents were first introduced to the hypothetical scheme through a detailed scenario description (Appendix B in Supplementary material), followed by an explanation of the corresponding trigger levels. Only then were they presented with the choice sets. Enumerators also read a ‘cheap talk’ script (Appendix C in Supplementary material) to reduce hypothetical bias (Cummings and Taylor, 1999).

Bottom Line: Theoretically, weather-index insurance is an effective risk reduction option for small-scale farmers in low income countries.Renewed policy and donor emphasis on bridging gender gaps in development also emphasizes the potential social safety net benefits that weather-index insurance could bring to women farmers who are disproportionately vulnerable to climate change risk and have low adaptive capacity.Our results reveal significant insurance aversion among female farmers, irrespective of the attributes of the insurance scheme.

View Article: PubMed Central - PubMed

Affiliation: Lee Kuan Yew School of Public Policy, National University of Singapore, 469C Bukit Timah Road, 259772, Singapore; Social Sciences Division, International Rice Research Institute, Los Baños, Laguna 4031, Philippines.

ABSTRACT

Theoretically, weather-index insurance is an effective risk reduction option for small-scale farmers in low income countries. Renewed policy and donor emphasis on bridging gender gaps in development also emphasizes the potential social safety net benefits that weather-index insurance could bring to women farmers who are disproportionately vulnerable to climate change risk and have low adaptive capacity. To date, no quantitative studies have experimentally explored weather-index insurance preferences through a gender lens, and little information exists regarding gender-specific preferences for (and constraints to) smallholder investment in agricultural weather-index insurance. This study responds to this gap, and advances the understanding of preference heterogeneity for weather-index insurance by analysing data collected from 433 male and female farmers living on a climate change vulnerable coastal island in Bangladesh, where an increasing number of farmers are adopting maize as a potentially remunerative, but high-risk cash crop. We implemented a choice experiment designed to investigate farmers' valuations for, and trade-offs among, the key attributes of a hypothetical maize crop weather-index insurance program that offered different options for bundling insurance with financial saving mechanisms. Our results reveal significant insurance aversion among female farmers, irrespective of the attributes of the insurance scheme. Heterogeneity in insurance choices could however not be explained by differences in men's and women's risk and time preferences, or agency in making agriculturally related decisions. Rather, gendered differences in farmers' level of trust in insurance institutions and financial literacy were the key factors driving the heterogeneous preferences observed between men and women. Efforts to fulfill gender equity mandates in climate-smart agricultural development programs that rely on weather-index insurance as a risk-abatement tool are therefore likely to require a strengthening of institutional credibility, while coupling such interventions with financial literacy programs for female farmers.

No MeSH data available.


Related in: MedlinePlus