Pérez-Blanco, C.D. and Gómez, C.M. and Delacámara, G. (2016) Revealing the willingness to pay for income insurance in agriculture. Journal of Risk Research, 19 (7). pp. 873-893. ISSN 1366-9877
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Abstract
In spite of its minor and decreasing share in EU GDP, agriculture still plays a fundamental and strategic role in the economy. This is why EU institutions have supported for decades a series of policies to guarantee a stable agricultural income, including insurance. With different degrees of public support, insurance policies covering an increasing number of risks have been developed across the EU. Eventually, EU institutions have started to encourage the development of income insurance. Income insurance covers more risks and has higher uncertainty and costs than conventional single risk or combined yield insurance. Assessing and enhancing the viability of income insurance demands an in depth knowledge of farmers' willingness to pay (WTP) for this product. This study develops a methodology to calculate the WTP for different degrees of income protection using a revealed preference model and the certainty equivalent theory. The methodology is applied in a drought prone area in southeastern Spain. Results show that WTP for income insurance in the area is higher than observed insurance premiums. This may play in favor of the development of more comprehensive income insurance systems.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HZ Economic and Institutional Analysis S Agriculture > S Agriculture (General) |
| Depositing User: | Sra. Marta Rodríguez Gómez |
| Date Deposited: | 01 Sep 2015 14:33 |
| Last Modified: | 13 Oct 2016 13:38 |
| URI: | http://eprints.imdea-agua.org:13000/id/eprint/519 |
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- Revealing the willingness to pay for income insurance in agriculture. (deposited 01 Sep 2015 14:33) [Currently Displayed]
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