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

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  • 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.

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  • 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
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    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. repec:ags:aaea22:335918 is not listed on IDEAS
    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.

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