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Willingness to Pay for a Potential Insurance Policy: Case Study of Trout Aquaculture

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  • Shaik, Saleem
  • Coble, Keith H.
  • Hudson, Darren
  • Miller, James C.
  • Hanson, Terrill R.
  • Sempier, Stephen H.

Abstract

Using trout producer survey data and the contingent valuation method, we estimate willingness to pay for a potential insurance policy. The survey was conducted in 2005 across the United States; 268 producers completed the survey instrument, resulting in a response rate of 81 percent. Design of the contingent valuation method takes into account two coverage levels and four premium rates. Using standard willingness-to-pay techniques, we assess the premium rate that producers with varying practices and regions are willing to pay for two different coverage levels of insurance. In general, trout producers appear willing to pay premium rates of 2 to 11 percent for these coverage levels.

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  • Shaik, Saleem & Coble, Keith H. & Hudson, Darren & Miller, James C. & Hanson, Terrill R. & Sempier, Stephen H., 2008. "Willingness to Pay for a Potential Insurance Policy: Case Study of Trout Aquaculture," Agricultural and Resource Economics Review, Cambridge University Press, vol. 37(1), pages 41-50, April.
    • Handle: RePEc:cup:agrerw:v:37:y:2008:i:01:p:41-50_00
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    2. Marcos Gallacher & Daniel Lema & Laura Gastaldi & Alejandro Galetto, 2016. "Climate variability and agricultural production in argentina: the role of risk-transfer mechanisms," Ensayos de Política Económica, Departamento de Investigación Francisco Valsecchi, Facultad de Ciencias Económicas, Pontificia Universidad Católica Argentina., vol. 2(4), pages 11-38, Octubre.
    3. Braun, Alexander & Schmeiser, Hato & Schreiber, Florian, 2016. "On consumer preferences and the willingness to pay for term life insurance," European Journal of Operational Research, Elsevier, vol. 253(3), pages 761-776.
    4. Yiling Deng & Ian A. Munn & Haibo Yao, 2021. "Attributes‐based conjoint analysis of landowner preferences for standing timber insurance," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 24(4), pages 421-444, December.
    5. Heenkenda, Shirantha, 2011. "Prospective Demand for an Index-Based Microinsurance in Sri Lanka," MPRA Paper 54420, University Library of Munich, Germany, revised Jul 2011.
    6. Cipollaro, Maria & Sacchelli, Sandro, 2018. "Demand and potential subsidy level for forest insurance market in Demand and potential subsidy level for forest insurance market in Italy," 2018 Seventh AIEAA Conference, June 14-15, Conegliano, Italy 275647, Italian Association of Agricultural and Applied Economics (AIEAA).
    7. Rong Kong & Calum G. Turvey & Guangwen He & Jiujie Ma & Patrick Meagher, 2011. "Factors influencing Shaanxi and Gansu farmers' willingness to purchase weather insurance," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 3(4), pages 423-440, November.

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