IDEAS home Printed from https://ideas.repec.org/p/zbw/rwirep/343540.html

Stated and realized demand for parametric rainfall insurance among rice farmers in Vietnam

Author

Listed:
  • Mogge, Lukas
  • Roeckert, Julian
  • Rukundo, Emmanuel Nshakira
  • Krähnert, Kati

Abstract

We study stated and realized demand for a new parametric insurance product against excessive rainfall among rice farmers in Vietnam's Mekong Delta, a region highly exposed to climate change. Using a household survey of 3,000 rice-farming households, we elicit willingness to pay (WTP) using a multiple-bounded dichotomous choice approach. Stated demand is substantial: 33% of respondents report a WTP of at least half the market price, and 18% report a WTP equal to or higher than the market price. Stated demand is significantly higher among men, younger respondents, and respondents reporting better self-assessed product understanding. Yet when insurance agents offered the product at a subsidized price below respondents' stated WTP, no respondent purchased it. We discuss mechanisms that may explain this discrepancy between stated and realized demand, including limited incentive compatibility of the WTP elicitation mechanism, changes in valuations, and contextual barriers to insurance adoption.

Suggested Citation

  • Mogge, Lukas & Roeckert, Julian & Rukundo, Emmanuel Nshakira & Krähnert, Kati, 2026. "Stated and realized demand for parametric rainfall insurance among rice farmers in Vietnam," Ruhr Economic Papers 1220, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:343540
    DOI: 10.4419/96973405
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/343540/1/1982435356.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.4419/96973405?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
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • G52 - Financial Economics - - Household Finance - - - Insurance
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    Statistics

    Access and download statistics

    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:zbw:rwirep:343540. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/rwiesde.html .

    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.