Estimating farmers’ willingness to pay for weather index-based crop insurance uptake in West Africa: Insight from a pilot initiative in Southwestern Burkina Faso

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dc.contributor.authorFonta, William M
dc.contributor.authorSanfo, Safietou
dc.contributor.authorKedir, Abbi M
dc.contributor.authorThiam, Djiby R
dc.date.accessioned2018-07-11T09:43:20Z
dc.date.available2018-07-11T09:43:20Z
dc.date.issued2018-06-14
dc.date.updated2018-06-17T03:36:14Z
dc.description.abstractWeather index-based crop insurance is increasingly becoming important as a risk mitigation strategy that farmers may use to mitigate adverse climate shocks and natural disasters encountered during farming. While Europe, North America, and Asia account for 20.1%, 55%, and 19.5% of the total agricultural insurance premium worldwide, respectively, Africa accounts for only 0.5% of the world insurance industry. One of the key reasons advanced against the low index insurance participation rate in Africa is the failure to involve farm households at the initial conceptualization and design of pilot initiatives. Therefore, the main purpose of this paper is to design an improved participatory methodology that could help elicit information on the value placed by farm households in Southwestern Burkina Faso on a new weather index-based crop insurance management initiative. A key concept in the improved participatory methodology is that of the willingness to pay (WTP) of farm households for the scheme. Knowledge of the maximum amount that farmers are willing to pay for the scheme can help insurance policy providers and public policy makers to design and put in place measures that sustain index insurance schemes in a developing country context and improve welfare among participating farmers.
dc.identifier.apacitationFonta, W. M., Sanfo, S., Kedir, A. M., & Thiam, D. R. (2018). Estimating farmers’ willingness to pay for weather index-based crop insurance uptake in West Africa: Insight from a pilot initiative in Southwestern Burkina Faso. http://hdl.handle.net/11427/28291en_ZA
dc.identifier.chicagocitationFonta, William M, Safietou Sanfo, Abbi M Kedir, and Djiby R Thiam "Estimating farmers’ willingness to pay for weather index-based crop insurance uptake in West Africa: Insight from a pilot initiative in Southwestern Burkina Faso." (2018) http://hdl.handle.net/11427/28291en_ZA
dc.identifier.citationFonta, W. M., Sanfo, S., Kedir, A. M., & Thiam, D. R. (2018). Estimating farmers’ willingness to pay for weather index-based crop insurance uptake in West Africa: Insight from a pilot initiative in Southwestern Burkina Faso. Agricultural and Food Economics, 6(1), 11.
dc.identifier.ris TY - Journal Article AU - Fonta, William M AU - Sanfo, Safietou AU - Kedir, Abbi M AU - Thiam, Djiby R AB - Weather index-based crop insurance is increasingly becoming important as a risk mitigation strategy that farmers may use to mitigate adverse climate shocks and natural disasters encountered during farming. While Europe, North America, and Asia account for 20.1%, 55%, and 19.5% of the total agricultural insurance premium worldwide, respectively, Africa accounts for only 0.5% of the world insurance industry. One of the key reasons advanced against the low index insurance participation rate in Africa is the failure to involve farm households at the initial conceptualization and design of pilot initiatives. Therefore, the main purpose of this paper is to design an improved participatory methodology that could help elicit information on the value placed by farm households in Southwestern Burkina Faso on a new weather index-based crop insurance management initiative. A key concept in the improved participatory methodology is that of the willingness to pay (WTP) of farm households for the scheme. Knowledge of the maximum amount that farmers are willing to pay for the scheme can help insurance policy providers and public policy makers to design and put in place measures that sustain index insurance schemes in a developing country context and improve welfare among participating farmers. DA - 2018-06-14 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2018 T1 - Estimating farmers’ willingness to pay for weather index-based crop insurance uptake in West Africa: Insight from a pilot initiative in Southwestern Burkina Faso TI - Estimating farmers’ willingness to pay for weather index-based crop insurance uptake in West Africa: Insight from a pilot initiative in Southwestern Burkina Faso UR - http://hdl.handle.net/11427/28291 ER - en_ZA
dc.identifier.urihttps://doi.org/10.1186/s40100-018-0104-6
dc.identifier.urihttp://hdl.handle.net/11427/28291
dc.identifier.vancouvercitationFonta WM, Sanfo S, Kedir AM, Thiam DR. Estimating farmers’ willingness to pay for weather index-based crop insurance uptake in West Africa: Insight from a pilot initiative in Southwestern Burkina Faso. 2018; http://hdl.handle.net/11427/28291.en_ZA
dc.language.isoen
dc.publisherSpringer Berlin Heidelberg
dc.publisher.departmentSchool of Economicsen_ZA
dc.publisher.facultyFaculty of Commerceen_ZA
dc.publisher.institutionUniversity of Cape Town
dc.rights.holderThe Author(s).
dc.subject.otherClimate change
dc.subject.otherAgricultural risk
dc.subject.otherAdaptation strategy
dc.subject.otherWeather index-based crop insurance
dc.subject.otherContingent valuation method
dc.subject.otherWillingness to pay
dc.subject.otherHeckman 2-step estimator
dc.titleEstimating farmers’ willingness to pay for weather index-based crop insurance uptake in West Africa: Insight from a pilot initiative in Southwestern Burkina Faso
dc.typeJournal Article
uct.type.filetypeText
uct.type.filetypeImage
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