IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v10y2018i6p1759-d149227.html
   My bibliography  Save this article

Land Suitability and Insurance Premiums: A GIS-based Multicriteria Analysis Approach for Sustainable Rice Production

Author

Listed:
  • Md Monjurul Islam

    (Graduate School of Life and Environmental Sciences, University of Tsukuba, Tsukuba 305-8572, Japan)

  • Tofael Ahamed

    (Faculty of Life and Environmental Sciences, University of Tsukuba, Tsukuba 305-8572, Japan)

  • Ryozo Noguchi

    (Faculty of Life and Environmental Sciences, University of Tsukuba, Tsukuba 305-8572, Japan)

Abstract

The purpose of this research is to develop a land suitability model for rice production based on suitability levels and to propose insurance premiums to obtain maximum returns based on the harvest index and subsidy dependence factor for the marginal and moderately suitable lands in the northern part of Bangladesh. A multicriteria analysis was undertaken and a rice land suitability map was developed using geographical information system and analytical hierarchy process. The analysis identified that 22.74% of the area was highly suitable, while 14.86% was marginally suitable, and 28.54% was moderately suitable for rice production. However, 32.67% of the area, which was occupied by water bodies, rivers, forests, and settlements, is permanently not suitable; 1.19% is presently not suitable. To motivate low-quality land owners to produce rice, there is no alternative but to provide protection through crop insurance. We suggest producing rice up to marginally suitable lands to obtain support from insurance. The minimum coverage is marginal coverage (70%) to cover the production costs, while the maximum coverage is high coverage (90%) to enable a maximum return. This new crop insurance model, based on land suitability can be a rational support for owners of different quality land to increase production.

Suggested Citation

  • Md Monjurul Islam & Tofael Ahamed & Ryozo Noguchi, 2018. "Land Suitability and Insurance Premiums: A GIS-based Multicriteria Analysis Approach for Sustainable Rice Production," Sustainability, MDPI, vol. 10(6), pages 1-28, May.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:6:p:1759-:d:149227
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/10/6/1759/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/10/6/1759/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ward, Patrick S. & Kumar, Neha & De Nicola, Francesca & Hill, Ruth & Makhija, Simrin & Spielman, David J. & Magnan, Nicholas, 2017. "Insuring Against Drought: Evidence on Agricultural Intensification and Demand for Index Insurance from a Randomized Evaluation in Rural Bangladesh," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258090, Agricultural and Applied Economics Association.
    2. Wai-Sum Chan & Yiu-Kuen Tse, 2017. "Financial Mathematics for Actuaries," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 10564, February.
    3. Eugene Gurenko & Olivier Mahul & . World Bank,washington (usa), 2004. "Enabling productive but asset-poor farmers to succeed : a risk financing framework," Working Papers hal-01952123, HAL.
    4. John C. Quiggin & Giannis Karagiannis & J. Stanton, 1993. "Crop Insurance And Crop Production: An Empirical Study Of Moral Hazard And Adverse Selection," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 37(2), pages 95-113, August.
    5. Byomkesh Talukder & Alison Blay-Palmer & Keith W. Hipel & Gary W. VanLoon, 2017. "Elimination Method of Multi-Criteria Decision Analysis (MCDA): A Simple Methodological Approach for Assessing Agricultural Sustainability," Sustainability, MDPI, vol. 9(2), pages 1-17, February.
    6. Daniel Clarke & Francesca de Nicola & Ruth Vargas Hill & Neha Kumar & Parendi Mehta, 2015. "A Chat about Insurance: Experimental Results from Rural Bangladesh," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 37(3), pages 477-501.
    7. Hill, Ruth Vargas & Kumar, Neha & Magnan, Nicholas & Makhija, Simrin & de Nicola, Francesca & Spielman, David J. & Ward, Patrick S., 2017. "Insuring against droughts: Evidence on agricultural intensification and index insurance demand from a randomized evaluation in rural Bangladesh," IFPRI discussion papers 1630, International Food Policy Research Institute (IFPRI).
    8. Shawn A. Cole & Wentao Xiong, 2017. "Agricultural Insurance and Economic Development," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 235-262, September.
    9. Sonia Akter & Roy Brouwer & Saria Choudhury & Salina Aziz, 2009. "Is there a commercially viable market for crop insurance in rural Bangladesh?," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 14(3), pages 215-229, March.
    10. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    11. Thomas L. Saaty & Luis G. Vargas, 2012. "Models, Methods, Concepts & Applications of the Analytic Hierarchy Process," International Series in Operations Research and Management Science, Springer, edition 2, number 978-1-4614-3597-6, March.
    12. Ming Wang & Tao Ye & Peijun Shi, 2016. "Factors Affecting Farmers’ Crop Insurance Participation in China," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 64(3), pages 479-492, September.
    13. Md. Ruhul Amin & Junbiao Zhang & Mingmei Yang, 2015. "Effects of Climate Change on the Yield and Cropping Area of Major Food Crops: A Case of Bangladesh," Sustainability, MDPI, vol. 7(1), pages 1-18, January.
    14. Saaty, Thomas L., 1990. "How to make a decision: The analytic hierarchy process," European Journal of Operational Research, Elsevier, vol. 48(1), pages 9-26, September.
    15. Yuanyuan Chen & Changhe Lu, 2018. "A Comparative Analysis on Food Security in Bangladesh, India and Myanmar," Sustainability, MDPI, vol. 10(2), pages 1-13, February.
    16. Shweta Sinha & Nitin K. Tripathi, 2016. "Assessing the Challenges in Successful Implementation and Adoption of Crop Insurance in Thailand," Sustainability, MDPI, vol. 8(12), pages 1-20, December.
    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. Yuyun Hidayat & Sukono & Betty Subartini & Nida Khairunnisa & Aceng Sambas & Titi Purwandari, 2022. "An Estimated Analysis of Willingness to Wait Time to Pay Rice Agricultural Insurance Premiums Using Cox’s Proportional Hazards Model," Mathematics, MDPI, vol. 10(21), pages 1-16, October.
    2. Md. Monirul Islam & Shusuke Matsushita & Ryozo Noguchi & Tofael Ahamed, 2022. "A damage-based crop insurance system for flash flooding: a satellite remote sensing and econometric approach," Asia-Pacific Journal of Regional Science, Springer, vol. 6(1), pages 47-89, February.
    3. Suddhasil Bose & Subhra Halder, 2023. "Identification of crop suitable land using geospatial techniques and assessment with socio-economic factors—case study from India," Asia-Pacific Journal of Regional Science, Springer, vol. 7(1), pages 229-253, March.
    4. Nadiatul Nazleen Ajman & Noor Yasmin Zainun & Noralfishah Sulaiman & Shabir Hussain Khahro & Farid Ezanee Mohamed Ghazali & Mohd Hilton Ahmad, 2021. "Environmental Impact Assessment (EIA) Using Geographical Information System (GIS): An Integrated Land Suitability Analysis of Filling Stations," Sustainability, MDPI, vol. 13(17), pages 1-14, September.
    5. Shaloo & Rishi Pal Singh & Himani Bisht & Rajni Jain & Truptimayee Suna & Ram Swaroop Bana & Samarth Godara & Yashbir Singh Shivay & Nirupma Singh & Jatin Bedi & Shbana Begam & Manisha Tamta & Shweta , 2022. "Crop-Suitability Analysis Using the Analytic Hierarchy Process and Geospatial Techniques for Cereal Production in North India," Sustainability, MDPI, vol. 14(9), pages 1-21, April.
    6. Billal Hossen & Helmut Yabar & Takeshi Mizunoya, 2021. "Land Suitability Assessment for Pulse (Green Gram) Production through Remote Sensing, GIS and Multicriteria Analysis in the Coastal Region of Bangladesh," Sustainability, MDPI, vol. 13(22), pages 1-24, November.
    7. Dorijan Radočaj & Jasmina Obhođaš & Mladen Jurišić & Mateo Gašparović, 2020. "Global Open Data Remote Sensing Satellite Missions for Land Monitoring and Conservation: A Review," Land, MDPI, vol. 9(11), pages 1-24, October.
    8. Dongli Chen & Degang Yang & Xinhuan Zhang & Yannan Zhao & Yufang Zhang, 2018. "Spatial Suitability Evaluation of an Arid City Based on the Perspective of Major Function Oriented Zoning: A Case Study of Urumqi City in Xinjiang, China," Sustainability, MDPI, vol. 10(9), pages 1-18, August.
    9. Shouqiang Yin & Jing Li & Jiaxin Liang & Kejing Jia & Zhen Yang & Yuan Wang, 2020. "Optimization of the Weighted Linear Combination Method for Agricultural Land Suitability Evaluation Considering Current Land Use and Regional Differences," Sustainability, MDPI, vol. 12(23), pages 1-25, December.

    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. Billal Hossen & Helmut Yabar & Takeshi Mizunoya, 2021. "Land Suitability Assessment for Pulse (Green Gram) Production through Remote Sensing, GIS and Multicriteria Analysis in the Coastal Region of Bangladesh," Sustainability, MDPI, vol. 13(22), pages 1-24, November.
    2. Mustafa Topuz & Mehmet Deniz, 2023. "Application of GIS and AHP for land use suitability analysis: case of Demirci district (Turkey)," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-15, December.
    3. Eshtaiwi, Mohamed & Badi, Ibrahim & Abdulshahed, Ali & Erkan, Turan Erman, 2018. "Determination of key performance indicators for measuring airport success: A case study in Libya," Journal of Air Transport Management, Elsevier, vol. 68(C), pages 28-34.
    4. Jochen Wulf, 2020. "Development of an AHP hierarchy for managing omnichannel capabilities: a design science research approach," Business Research, Springer;German Academic Association for Business Research, vol. 13(1), pages 39-68, April.
    5. V. Srinivasan & G. Shainesh & Anand K. Sharma, 2015. "An approach to prioritize customer-based, cost-effective service enhancements," The Service Industries Journal, Taylor & Francis Journals, vol. 35(14), pages 747-762, October.
    6. Kik, M.C. & Claassen, G.D.H. & Meuwissen, M.P.M. & Smit, A.B. & Saatkamp, H.W., 2021. "Actor analysis for sustainable soil management – A case study from the Netherlands," Land Use Policy, Elsevier, vol. 107(C).
    7. Choudhary, Devendra & Shankar, Ravi, 2012. "An STEEP-fuzzy AHP-TOPSIS framework for evaluation and selection of thermal power plant location: A case study from India," Energy, Elsevier, vol. 42(1), pages 510-521.
    8. Madjid Tavana & Mariya Sodenkamp & Leena Suhl, 2010. "A soft multi-criteria decision analysis model with application to the European Union enlargement," Annals of Operations Research, Springer, vol. 181(1), pages 393-421, December.
    9. Alpana Agarwal & Divina Raghav, 2023. "Analysing Determinants of Employee Performance Based on Reverse Mentoring and Employer Branding Using Analytic Hierarchical Process," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 48(3), pages 343-358, August.
    10. Sadiq Ullah & Mudassar Iqbal & Muhammad Waseem & Adnan Abbas & Muhammad Masood & Ghulam Nabi & Muhammad Atiq Ur Rehman Tariq & Muhammad Sadam, 2024. "Potential Sites for Rainwater Harvesting Focusing on the Sustainable Development Goals Using Remote Sensing and Geographical Information System," Sustainability, MDPI, vol. 16(21), pages 1-23, October.
    11. Wenshuai Wu & Gang Kou, 2016. "A group consensus model for evaluating real estate investment alternatives," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 2(1), pages 1-10, December.
    12. Andre Bender & Allan Din & Philippe Favarger & Martin Hoesli & Janne Laakso, 1997. "An Analysis of Perceptions Concerning the Environmental Quality of Housing in Geneva," Urban Studies, Urban Studies Journal Limited, vol. 34(3), pages 503-513, March.
    13. Fabio Blanco-Mesa & Anna M. Gil-Lafuente & José M. Merigó, 2018. "Subjective stakeholder dynamics relationships treatment: a methodological approach using fuzzy decision-making," Computational and Mathematical Organization Theory, Springer, vol. 24(4), pages 441-472, December.
    14. Prabhat Kumar & Puneet Tandon, 2019. "A paradigm for customer-driven product design approach using extended axiomatic design," Journal of Intelligent Manufacturing, Springer, vol. 30(2), pages 589-603, February.
    15. Dang, Shuo & Chu, Liangyong, 2016. "Evaluation framework and verification for sustainable container management as reusable packaging," Journal of Business Research, Elsevier, vol. 69(5), pages 1949-1955.
    16. Satheeskumar Navaratnam, 2022. "Selecting a Suitable Sustainable Construction Method for Australian High-Rise Building: A Multi-Criteria Analysis," Sustainability, MDPI, vol. 14(12), pages 1-17, June.
    17. Zhu, Bin & Xu, Zeshui & Zhang, Ren & Hong, Mei, 2016. "Hesitant analytic hierarchy process," European Journal of Operational Research, Elsevier, vol. 250(2), pages 602-614.
    18. Caprioli, Caterina & Bottero, Marta, 2021. "Addressing complex challenges in transformations and planning: A fuzzy spatial multicriteria analysis for identifying suitable locations for urban infrastructures," Land Use Policy, Elsevier, vol. 102(C).
    19. Martina Kuncova & Jana Seknickova, 2022. "Two-stage weighted PROMETHEE II with results’ visualization," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 30(2), pages 547-571, June.
    20. Tasneem Bani-Mustafa & Nicola Pedroni & Enrico Zio & Dominique Vasseur & Francois Beaudouin, 2020. "A hierarchical tree-based decision-making approach for assessing the relative trustworthiness of risk assessment models," Journal of Risk and Reliability, , vol. 234(6), pages 748-763, December.

    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:gam:jsusta:v:10:y:2018:i:6:p:1759-:d:149227. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.