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Investigating Demand for Weather Index Insurance: Experimental Evidence from Ethiopia

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Author Info

  • Norton, Michael T.
  • Holthaus, Eric
  • Madajewicz, Malgosia
  • Osgood, Daniel E.
  • Peterson, Nicole
  • Gebremichael, Mengesha
  • Mullally, Conner
  • Teh, TseLing

Abstract

There is much interest in weather index insurance as a poverty‐mitigating tool, but concerns persist about potential demand for the product among the poorest of the poor. This paper relates the experiences in rural areas of Tigray region, Ethiopia through both commercial sign‐up data and a series of experimental games conducted to test demand for weather index insurance. Demand was observed to be considerable in both.

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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 104022.

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Date of creation: 2011
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Handle: RePEc:ags:aaea11:104022

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Keywords: Risk and Uncertainty;

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  1. Robert M. Townsend & Shawn Cole & Jeremy Tobacman & Xavier Gine & James Ian Vickery & Petia Topalova, 2012. "Barriers to Household Risk Management: Evidence from India," IMF Working Papers 12/195, International Monetary Fund.
  2. Lybbert, Travis J. & Galarza, Francisco B. & McPeak, John G. & Barrett, Christopher B. & Boucher, Stephen R. & Carter, Michael R. & Chantarat, Sommarat & Fadlaoui, Aziz & Mude, Andrew G., 2010. "Dynamic Field Experiments in Development Economics: Risk Valuation in Morocco, Kenya, and Peru," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 39(2), April.
  3. Gine, Xavier & Yang, Dean, 2007. "Insurance, credit, and technology adoption : field experimental evidence from Malawi," Policy Research Working Paper Series 4425, The World Bank.
  4. Ruth Vargas Hill, 2009. "Using Stated Preferences and Beliefs to Identify the Impact of Risk on Poor Households," Journal of Development Studies, Taylor & Francis Journals, vol. 45(2), pages 151-171.
  5. Ethan Ligon, 2009. "Risk Management in the Cooperative Contract," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1211-1217.
  6. Vedenov, Dmitry V. & Barnett, Barry J., 2004. "Efficiency of Weather Derivatives as Primary Crop Insurance Instruments," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(03), December.
  7. Mahmud Yesuf & Randall A. Bluffstone, 2009. "Poverty, Risk Aversion, and Path Dependence in Low-Income Countries: Experimental Evidence from Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 1022-1037.
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Cited by:
  1. Eling, Martin & Pradhan, Shailee & Schmit, Joan T., 2013. "The Determinants of Microinsurance Demand," Working Papers on Finance 1308, University of St. Gallen, School of Finance.

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