The impact of weather index insurance on agricultural technology adoption evidence from field economic experiment in China

Purpose The purpose of this paper is to empirically investigate the impact of weather index insurance on agricultural technology adoption in rural China. Design/methodology/approach A field experiment was conducted with 344 rural households/farmers in Heilongjiang and Jiangsu Provinces, China. DID m...

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Veröffentlicht in:China agricultural economic review 2019-10, Vol.11 (4), p.622-641
Hauptverfasser: Tang, Yingmei, Yang, Yue, Ge, Jihong, Chen, Jian
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Chen, Jian
description Purpose The purpose of this paper is to empirically investigate the impact of weather index insurance on agricultural technology adoption in rural China. Design/methodology/approach A field experiment was conducted with 344 rural households/farmers in Heilongjiang and Jiangsu Provinces, China. DID model was used to evaluate farmers’ technology adoption with and without index insurance. Findings The results show that weather index insurance has a significant effect on the technology adoption of rural households; there is a regional difference in this effect between Heilongjiang and Jiangsu. Weather index insurance promotes technology adoption of rural households in Heilongjiang, while has limited impact on those in Jiangsu. Weather, planting scale and risk preference are also important factors influencing the technology adoption of rural households. Research limitations/implications This research is subject to some limitations. First, the experimental parameters are designed according to the actual situation to simulate reality, but the willingness in the experiment does not mean it will be put into action in reality. Second, due to the diversity of China’s climate, geography and economic environment, rural households are heterogeneous in rural China. Whether the conclusion can be generalized beyond the study area is naturally questionable. A study with more diverse samples is needed to gain a fuller understanding of index insurance’s effects on farmers in China. Originality/value This research provides a rigorous empirical analysis on the impact of weather index insurance on farmers’ agricultural technology adoption through a carefully designed field experiment.
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Second, due to the diversity of China’s climate, geography and economic environment, rural households are heterogeneous in rural China. Whether the conclusion can be generalized beyond the study area is naturally questionable. A study with more diverse samples is needed to gain a fuller understanding of index insurance’s effects on farmers in China. Originality/value This research provides a rigorous empirical analysis on the impact of weather index insurance on farmers’ agricultural technology adoption through a carefully designed field experiment.</abstract><cop>Bingley</cop><pub>Emerald Publishing Limited</pub><doi>10.1108/CAER-05-2018-0107</doi><tpages>20</tpages></addata></record>
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subjects Agricultural economics
Agricultural practices
Agricultural production
Agricultural technology
Agriculture
Agronomy
Climate
Computer simulation
Cost control
Crop insurance
Developing countries
Economic models
Economics
Empirical analysis
Experiments
Farmers
Geography
Households
Impact analysis
Insurance
Insurance coverage
LDCs
Productivity
Provinces
Rural areas
Rural communities
Rural environments
Technology
Technology adoption
Technology assessment
Technology utilization
Weather
title The impact of weather index insurance on agricultural technology adoption evidence from field economic experiment in China
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