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Case study analysis on household attitudes towards weather index crop insurance in rural China

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  • Zhang, Jing
  • Brown, Colin
  • Waldron, Scott

Abstract

The paper extends on the literature assessing China’s current “policy-oriented” agricultural insurance crop system to understand and to investigate the factors influencing the relative merits and potential demand for weather index crop insurance as a means for individual farmers in rural China to cope with weather-related production risks. Using the case of Huojia County in Henan Province, an empirical analysis is conducted of information collected from households’ survey and interviews with local village leaders. The key finding is that there is a significant potential demand for weather index crop insurance product as households seek time-efficient risk management strategies although this demand is influenced by generally poor awareness of insurance, small areas, and relatively low profitability of crop production.

Suggested Citation

  • Zhang, Jing & Brown, Colin & Waldron, Scott, 2017. "Case study analysis on household attitudes towards weather index crop insurance in rural China," 2017 Conference (61st), February 7-10, 2017, Brisbane, Australia 258683, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare17:258683
    DOI: 10.22004/ag.econ.258683
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    References listed on IDEAS

    as
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    3. Hans P. Binswanger-Mkhize, 2012. "Is There Too Much Hype about Index-based Agricultural Insurance?," Journal of Development Studies, Taylor & Francis Journals, vol. 48(2), pages 187-200, February.
    4. Harold Alderman & Trina Haque, 2007. "Insurance Against Covariate Shocks : The Role of Index-Based Insurance in Social Protection in Low-Income Countries of Africa," World Bank Publications - Books, The World Bank Group, number 6736, December.
    5. Jerry R. Skees & Barry J. Barnett & Anne G. Murphy, 2008. "Creating insurance markets for natural disaster risk in lower income countries: the potential role for securitization," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 68(1), pages 151-167, May.
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    Keywords

    Agricultural and Food Policy; Environmental Economics and Policy; Risk and Uncertainty;
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