MATHEO - How may climate change influence farmers' index-based insurance demand ? - Tristan Le Cotty - 09 février 2017 - Montpellier

Le premier séminaire MATHEO 2017 a eu lieu le 09 février 2017 de 11h à 12h30 en salle Mosson, Irstea, rue J.F. Breton.

Tristan Le Cotty (CIRAD, UMR CIRED) a présenté un travail intitulé: How may climate change influence farmers' index-based insurance demand ?

Résumé:

This paper analyzes the role of drought frequency in farmers’ demand for index insurance in developing countries.

In a model derived from Doherty and Schlessinger (1990), we show that the demand for insurance is an inverted U curve function of drought frequency. We further show that both loading factor and basis risk hinder insurance demand for high drought frequency. To assess the empirical relevance of such effects, we led an insurance field experiment in Burkina Faso with 205 farmers.

Analysis of revealed insurance demand for different frequencies of insured drought, different levels of basis risks and different loading factors through incentivized lotteries choices confirms that insurance demand decreases with basis risk and the loading factor. More importantly we empirically establish that increasing drought frequency lead to lower insurance demand.

SHARE
APT Logo fra      logo brgm web frlogo inraeLogo Institut Agro Mpl petit

 

Enregistrer

Enregistrer

Enregistrer

Enregistrer

Enregistrer

Enregistrer