Willingness to pay for weather-based index insurance in milk production
This paper proposes the use of a weather-based index insurance for managing production risk in dairy farms of Argentina. We analyse the potential use of this product to protect against the risk of reduced milk production caused by extreme weather conditions (rainfall and temperature). Using milk pro...
| Autores principales: | , , , |
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| Formato: | Artículo publishedVersion |
| Lenguaje: | Español |
| Publicado: |
2019
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| Acceso en línea: | http://bibliotecadigital.econ.uba.ar/econ/collection/rimf/document/rimf_v8_n1_04 https://repositoriouba.sisbi.uba.ar/gsdl/cgi-bin/library.cgi?a=d&c=modelfin&d=rimf_v8_n1_04_oai |
| Aporte de: |
| Sumario: | This paper proposes the use of a weather-based index insurance for managing production risk in dairy farms of Argentina. We analyse the potential use of this product to protect against the risk of reduced milk production caused by extreme weather conditions (rainfall and temperature). Using milk producer survey data and contingent valuation method we estimate willingness to pay for a potential insurance policy. The survey was conducted in the central region of Argentina and 165 milk producers were surveyed. Design of the contingent valuation method considers the specific characteristics of the potential product and four premium rates. Using standard willingness to pay techniques, we assess the premium rate that milk producers are willing to pay. In general milk producers appear willing to pay premium rates of 6 to 12 percent for the hypothetical insurance product. |
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