IDEAS home Printed from https://ideas.repec.org/a/eee/wodepe/v15y2019ic2.html
   My bibliography  Save this article

Evaluating producer preferences and information processing strategies for drought risk management tools in Bangladesh

Author

Listed:
  • Ortega, David L.
  • Ward, Patrick S.
  • Caputo, Vincenzina

Abstract

We use stated preference data to study farmers’ preferences for two alternative strategies to manage drought risks in Bangladesh. A choice experiment on drought tolerant rice varieties and weather index insurance was administered to 2306 farmers. Two overarching preference classes or meso-groups were identified using an equality constrained latent class model, each containing various patterns of attribute non-attendance. Our analysis finds that farmers rely on information processing strategies to simplify risk management tool decisions to mitigate drought risk. Differences in the use of farm inputs, and access to savings mechanisms, both formal and informal, are shown to affect decision making.

Suggested Citation

  • Ortega, David L. & Ward, Patrick S. & Caputo, Vincenzina, 2019. "Evaluating producer preferences and information processing strategies for drought risk management tools in Bangladesh," World Development Perspectives, Elsevier, vol. 15(C), pages 1-1.
    • Handle: RePEc:eee:wodepe:v:15:y:2019:i:c:2
    DOI: 10.1016/j.wdp.2019.100132
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S245229291930150X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.wdp.2019.100132?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ortega, David L. & Waldman, Kurt B. & Richardson, Robert B. & Clay, Daniel C. & Snapp, Sieglinde, 2016. "Sustainable Intensification and Farmer Preferences for Crop System Attributes: Evidence from Malawi’s Central and Southern Regions," World Development, Elsevier, vol. 87(C), pages 139-151.
    2. Mariel, Petr & Hoyos, D. & Meyerhoff, J., 2013. "Stated or inferred attribute non-attendance? A simulation approach," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 13(01).
    3. Mohammed Alemu & Morten Mørkbak & Søren Olsen & Carsten Jensen, 2013. "Attending to the Reasons for Attribute Non-attendance in Choice Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(3), pages 333-359, March.
    4. Dercon, Stefan, 1996. "Risk, Crop Choice, and Savings: Evidence from Tanzania," Economic Development and Cultural Change, University of Chicago Press, vol. 44(3), pages 485-513, April.
    5. Fredrik Carlsson & Mitesh Kataria & Elina Lampi, 2010. "Dealing with Ignored Attributes in Choice Experiments on Valuation of Sweden’s Environmental Quality Objectives," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 47(1), pages 65-89, September.
    6. David L. Ortega & Patrick S. Ward, 2016. "Information processing strategies and framing effects in developing country choice experiments: results from rice farmers in India," Agricultural Economics, International Association of Agricultural Economists, vol. 47(5), pages 493-504, September.
    7. Dercon, Stefan & De Weerdt, Joachim & Bold, Tessa & Pankhurst, Alula, 2006. "Group-based funeral insurance in Ethiopia and Tanzania," World Development, Elsevier, vol. 34(4), pages 685-703, April.
    8. Riccardo Scarpa & Mara Thiene & David A. Hensher, 2010. "Monitoring Choice Task Attribute Attendance in Nonmarket Valuation of Multiple Park Management Services: Does It Matter?," Land Economics, University of Wisconsin Press, vol. 86(4), pages 817-839.
    9. Fafchamps, Marcel & Lund, Susan, 2003. "Risk-sharing networks in rural Philippines," Journal of Development Economics, Elsevier, vol. 71(2), pages 261-287, August.
    10. Ward, Patrick S. & Makhija, Simrin, 2018. "New modalities for managing drought risk in rainfed agriculture: Evidence from a discrete choice experiment in Odisha, India," World Development, Elsevier, vol. 107(C), pages 163-175.
    11. Ochieng, Dennis O. & Veettil, Prakashan C. & Qaim, Matin, 2017. "Farmers’ preferences for supermarket contracts in Kenya," Food Policy, Elsevier, vol. 68(C), pages 100-111.
    12. Hess, Stephane & Hensher, David A., 2010. "Using conditioning on observed choices to retrieve individual-specific attribute processing strategies," Transportation Research Part B: Methodological, Elsevier, vol. 44(6), pages 781-790, July.
    13. Harold Alderman & Christina H. Paxson, 1994. "Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries," International Economic Association Series, in: Edmar L. Bacha (ed.), Economics in a Changing World, chapter 3, pages 48-78, Palgrave Macmillan.
    14. Vincenzina Caputo & Ellen J. Van Loo & Riccardo Scarpa & Rodolfo M. Nayga & Wim Verbeke, 2018. "Comparing Serial, and Choice Task Stated and Inferred Attribute Non†Attendance Methods in Food Choice Experiments," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(1), pages 35-57, February.
    15. Caputo, Vincenzina & Nayga, Rodolfo M. Jr. & Scarpa, Riccardo, 2013. "Food miles or carbon emissions? Exploring labelling preference for food transport footprint with a stated choice study," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(4), pages 1-18.
    16. Hensher,David A. & Rose,John M. & Greene,William H., 2015. "Applied Choice Analysis," Cambridge Books, Cambridge University Press, number 9781107465923.
    17. Riccardo Scarpa & Raffaele Zanoli & Viola Bruschi & Simona Naspetti, 2013. "Inferred and Stated Attribute Non-attendance in Food Choice Experiments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(1), pages 165-180.
    18. Ward, Patrick S. & Ortega, David L. & Spielman, David J. & Singh, Vartika, 2014. "Heterogeneous Demand for Drought-Tolerant Rice: Evidence from Bihar, India," World Development, Elsevier, vol. 64(C), pages 125-139.
    19. David Hensher & William Greene, 2010. "Non-attendance and dual processing of common-metric attributes in choice analysis: a latent class specification," Empirical Economics, Springer, vol. 39(2), pages 413-426, October.
    20. Clarke, Danielle & Das, Narayan C. & de Nicola, Francesca & Hill, Ruth Vargas & Kumar, Neha & Mehta, Parendi, 2012. "The value of customized insurance for farmers in rural Bangladesh:," IFPRI discussion papers 1202, International Food Policy Research Institute (IFPRI).
    21. Danny Campbell & David A. Hensher & Riccardo Scarpa, 2011. "Non-attendance to attributes in environmental choice analysis: a latent class specification," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 54(8), pages 1061-1076, December.
    22. Nelson, Gerald C. & Rosegrant, Mark W. & Koo, Jawoo & Robertson, Richard & Sulser, Timothy & Zhu, Tingju & Ringler, Claudia & Msangi, Siwa & Palazzo, Amanda & Batka, Miroslav & Magalhaes, Marilia & Va, 2009. "Climate change: Impact on agriculture and costs of adaptation," Food policy reports 21, International Food Policy Research Institute (IFPRI).
    23. Muhammad Bello & Awudu Abdulai, 2016. "Impact of Ex-Ante Hypothetical Bias Mitigation Methods on Attribute Non-Attendance in Choice Experiments," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(5), pages 1486-1506.
    24. David Hensher & John Rose & William Greene, 2005. "The implications on willingness to pay of respondents ignoring specific attributes," Transportation, Springer, vol. 32(3), pages 203-222, May.
    25. Marit E. Kragt, 2013. "Stated and Inferred Attribute Attendance Models: A Comparison with Environmental Choice Experiments," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 719-736, September.
    26. Riccardo Scarpa & Timothy J. Gilbride & Danny Campbell & David A. Hensher, 2009. "Modelling attribute non-attendance in choice experiments for rural landscape valuation," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 36(2), pages 151-174, June.
    27. A. Atiq Rahman, Mozaharul Alam, Sarder Shafiqul Alam, Md. Rabi Uzzaman, Mariam Rashid and Golam Rabbani, 2007. "Risks, Vulnerability and Adaptation in Bangladesh," Human Development Occasional Papers (1992-2007) HDOCPA-2007-13, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    28. Waldman, Kurt B. & Ortega, David L. & Richardson, Robert B. & Snapp, Sieglinde S., 2017. "Estimating demand for perennial pigeon pea in Malawi using choice experiments," Ecological Economics, Elsevier, vol. 131(C), pages 222-230.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tajana Čop & Mario Njavro, 2022. "Application of Discrete Choice Experiment in Agricultural Risk Management: A Review," Sustainability, MDPI, vol. 14(17), pages 1-17, August.
    2. Herrington, Caitlin L. & Maredia, Mywish K. & Ortega, David L. & Reyes, Byron A., 2023. "The Impact of Endogenous and Exogenous Factors on Farmer Willingness-to-Pay for Biofortified Bean Seed: A Field Experiment in Rural Zimbabwe," 2023 Annual Meeting, July 23-25, Washington D.C. 335918, Agricultural and Applied Economics Association.
    3. Herrington, Caitlin L. & Maredia, Mywish & Ortega, David L. & Taleon, Victor & Birol, Ekin & Sarkar, Abdur Rouf & Rahaman, Shajedur, 2021. "Rural Bangladeshi Consumers' Willingness to Pay for Rice with Improved Nutrition via Zinc Biofortified Rice and Decreased Milling Practices," 2021 Conference, August 17-31, 2021, Virtual 315079, International Association of Agricultural Economists.
    4. Caitlin L. Herrington & Mywish K. Maredia & David L. Ortega & Victor Taleon & Ekin Birol & Md Abdur Rouf Sarkar & Md Shajedur Rahaman, 2023. "Rural Bangladeshi consumers’ (un)willingness to pay for low‐milled rice: Implications for zinc biofortification," Agricultural Economics, International Association of Agricultural Economists, vol. 54(1), pages 5-22, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gonçalves, Tânia & Lourenço-Gomes, Lina & Pinto, Lígia M. Costa, 2022. "The role of attribute non-attendance on consumer decision-making: Theoretical insights and empirical evidence," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 788-805.
    2. Espinosa-Goded, María & Rodriguez-Entrena, Macario & Salazar-Ordóñez, Melania, 2021. "A straightforward diagnostic tool to identify attribute non-attendance in discrete choice experiments," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 211-226.
    3. Caputo, Vincenzina & Loo, Ellen J. Van & Scarpa, Riccardo & Nayga, Rodolfo M. Jr & Verbeke, Wim, 2014. "“Using Experiments to Address Attribute Non-attendance in Consumer Food Choices”," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 177173, Agricultural and Applied Economics Association.
    4. Logar, Ivana & Brouwer, Roy & Campbell, Danny, 2020. "Does attribute order influence attribute-information processing in discrete choice experiments?," Resource and Energy Economics, Elsevier, vol. 60(C).
    5. Sandra Notaro & Maria De Salvo & Roberta Raffaelli, 2022. "Estimating Willingness to Pay for Alpine Pastures: A Discrete Choice Experiment Accounting for Attribute Non-Attendance," Sustainability, MDPI, vol. 14(7), pages 1-15, March.
    6. Chen, Xuqi & Shen, Meng & Gao, Zhifeng, 2017. "Impact of Intra-respondent Variations in Attribute Attendance on Consumer Preference in Food Choice," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258509, Agricultural and Applied Economics Association.
    7. Kemper, Nathan & Popp, Jennie & Nayga, Jr., Rodolfo M. & Bazzani, Claudia, 2024. "A Query Approach to Modeling Attendance to Attributes in Discrete Choice Experiments," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 0(Preprint), January.
    8. Gonçalves, Tânia & Pinto, Lígia M. Costa & Lourenço-Gomes, Lina, 2020. "Attribute non-attendance in wine choice: Contrasts between stated and inferred approaches," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 262-275.
    9. Jourdain, Damien & Lairez, Juliette & Striffler, Bruno & Lundhede, Thomas, 2022. "A choice experiment approach to evaluate maize farmers’ decision-making processes in Lao PDR," Journal of choice modelling, Elsevier, vol. 44(C).
    10. Caputo, Vincenzina & Nayga, M. Rodolfo Jr. & Sacchi, Giovanna & Scarpa, Riccardo, 2016. "Attribute non-attendance or attribute-level non-attendance? A choice experiment application on extra virgin olive oil," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236035, Agricultural and Applied Economics Association.
    11. Nguyen, Thanh Cong & Robinson, Jackie & Whitty, Jennifer A. & Kaneko, Shinji & Nguyen, The Chinh, 2015. "Attribute non-attendance in discrete choice experiments: A case study in a developing country," Economic Analysis and Policy, Elsevier, vol. 47(C), pages 22-33.
    12. Yangui, A. & Akaichi, F. & Gil, J.M., 2018. "Investigating attribute non-attendance effects in conjoint analysis methods performance: Choice experiment, ranking conjoint analysis and best worst scaling," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 275989, International Association of Agricultural Economists.
    13. Macario Rodríguez‐Entrena & Anastasio J. Villanueva & José A. Gómez‐Limón, 2019. "Unraveling determinants of inferred and stated attribute nonattendance: Effects on farmers’ willingness to accept to join agri‐environmental schemes," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 67(1), pages 31-52, March.
    14. Weller, Priska & Oehlmann, Malte & Mariel, Petr & Meyerhoff, Jürgen, 2014. "Stated and inferred attribute non-attendance in a design of designs approach," Journal of choice modelling, Elsevier, vol. 11(C), pages 43-56.
    15. Gonçalves, Tânia & Lourenço-Gomes, Lina & Pinto, Lígia M. Costa, 2020. "Dealing with ignored attributes through an inferred approach in wine choice experiments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 87(C).
    16. Sandorf, Erlend Dancke & Crastes dit Sourd, Romain & Mahieu, Pierre-Alexandre, 2018. "The effect of attribute-alternative matrix displays on preferences and processing strategies," Journal of choice modelling, Elsevier, vol. 29(C), pages 113-132.
    17. Patrick S. Ward & David L. Ortega & David J. Spielman & Neha Kumar & Sumedha Minocha, 2020. "Demand for Complementary Financial and Technological Tools for Managing Drought Risk," Economic Development and Cultural Change, University of Chicago Press, vol. 68(2), pages 607-653.
    18. Kemper, Nathan & Nayga, Rodolfo M. Jr. & Popp, Jennie & Bazzani, Claudia, 2016. "The Effects of Honesty Oath and Consequentiality in Choice Experiments," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235381, Agricultural and Applied Economics Association.
    19. Colombo, Sergio & Christie, Michael & Hanley, Nick, 2013. "What are the consequences of ignoring attributes in choice experiments? Implications for ecosystem service valuation," Ecological Economics, Elsevier, vol. 96(C), pages 25-35.
    20. Hole, Arne Risa & Kolstad, Julie Riise & Gyrd-Hansen, Dorte, 2013. "Inferred vs. stated attribute non-attendance in choice experiments: A study of doctors’ prescription behaviour," Journal of Economic Behavior & Organization, Elsevier, vol. 96(C), pages 21-31.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wodepe:v:15:y:2019:i:c:2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/world-development-perspectives .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.