Willingness to pay for agricultural crop insurance in the northern EU

2014 ◽  
Vol 74 (4) ◽  
pp. 539-554 ◽  
Author(s):  
Petri Liesivaara ◽  
Sami Myyrä
Keyword(s):  
Willingness To Pay ◽  
Crop Insurance ◽  
Arable Land ◽  
Mixed Logit ◽  
Insurance Companies ◽  
Agricultural Crop ◽  
Content Type ◽  
Factors Affecting ◽  
Anchoring Effect ◽  
Split Sample

Purpose – The purpose of this paper is to investigate the demand for crop insurance. Moreover, farmer willingness to pay (WTP) for crop insurance was derived. Factors affecting the demand were also examined in a country where crop insurance products are not currently available. Sensitivity analysis was conducted by studying the price-anchoring effect. Design/methodology/approach – Data from a choice experiment (CE) were analyzed with mixed logit models and the distribution of farmer WTP for crop insurance was derived. A split sample approach with varying premium vectors was used to analyze the price-anchoring effect. Findings – Demand was revealed for crop insurance products in Finland. The demand was higher among younger farmers and farms with more arable land. WTP for crop insurance products was very sensitive to the premium interval presented in the CE design. Research limitations/implications – The price-anchoring effect may disrupt the market development of crop insurance products, because insurance companies may take advantage of the lack of awareness among farmers of crop insurance pricing. Practical implications – The insurance product expected indemnity was a more important factor than the deductible in determining farmer WTP for crop insurance. Therefore, the 30 percent deductible level set for subsidized crop insurance products is not an obstacle for the development of such products in the EU. Originality/value – The study applied a well-known method (CE) to crop insurance in a country where these products are non-existent. The split sample approach was used to examine the price-anchoring effect on crop insurance.

Consumer behaviour towards willingness to pay for Halal products

2019 ◽  
Vol 121 (2) ◽  
pp. 492-504 ◽  
Author(s):  
Waqar Ahmed ◽  
Arsalan Najmi ◽  
Hafiz Muhammad Faizan ◽  
Shaharyar Ahmed
Keyword(s):  
Willingness To Pay ◽  
Structural Equation ◽  
Quantitative Research ◽  
Reasoned Action ◽  
Raw Material ◽  
Equation Modeling ◽  
Muslim Country ◽  
Policy Makers ◽  
Content Type ◽  
Factors Affecting

PurposeThe purpose of this paper is to empirically analyze the factors affecting Muslim consumers’ willingness to pay (WTP) for Halal food, products and operations by employing theory of reasoned action.Design/methodology/approachThis study has used quantitative research methodology and collected data from 350 questionnaires from a densely populated city of Pakistan. Partial least squares-structural equation modeling was used to analyze the data.FindingsThe results show that the concerns about Halal, religiosity, perception of usefulness of Halal and product ingredients have a significant impact on WTP for Halal foods, while attitude has an insignificant impact on WTP. Moreover, the extent of demand for Halal certification is significantly affected by WTP.Originality/valueThe study highlighted the concerns of the Muslim consumers with respect to Halalness of the products and operations despite living in a Muslim country. It is recommended that the policy makers, food authorities and health institutions should conduct regular inspections of foods, products and producers’/manufacturers’ operations to ensure that all the procedures from manufacturing of the raw material till the finished goods follow Islamic principles to make them completely Halal.

Determining the factors affecting the consumers' willingness to pay higher prices for genetically unmodified products

2009 ◽  
Vol 111 (11) ◽  
pp. 1188-1199 ◽  
Author(s):  
Z. Gokalp Goktolga ◽  
Kemal Esengun
Keyword(s):  
Willingness To Pay ◽  
Household Income ◽  
Consumer Preference ◽  
Household Size ◽  
Negative Effects ◽  
Content Type ◽  
Factors Affecting ◽  
Monthly Household Income ◽  
Positive Effects ◽  
Conducting Research

PurposeThe purpose of this paper is to determine the factors affecting the consumers' willingness to pay higher prices for genetically unmodified products.Design/methodology/approachTomato was selected as a model crop. Data used in this study were gathered from questionnaires conducted in Tokat province of Turkey in April 2006. Questionnaires were accomplished via face‐to‐face interviews over 262 households. “Ordered logit model” was used in determining the factors that affect the willingness of consumers for higher prices for genetically unmodified products. Ordered models are those that limit dependent variables to certain intervals. According to the results, variables of household size, monthly household income, household's monthly food consumption expenditure and level of consumers' sensitivity over the issue affected the willingness to pay higher prices for genetically unmodified products.FindingsResults of the study indicated that household size and monthly household income had negative effects on the willingness to pay extra, while monthly food expenditure and concern had positive effects.Originality/valueThe results of the study will be beneficial for the policy makers, producers, consumers and those conducting research in this area alike. Carrying out studies aimed at determining consumer preference, such as this, will help form consumer consciousness, especially in Turkey, to protect consumer health.

scholarly journals Consumers’ willingness to pay for organic products in Thailand

2015 ◽  
Vol 42 (5) ◽  
pp. 480-510 ◽  
Author(s):  
Yaowarat Sriwaranun ◽  
Christopher Gan ◽  
Minsoo Lee ◽  
David A Cohen
Keyword(s):  
Willingness To Pay ◽  
Contingent Valuation Method ◽  
Good Health ◽  
Content Type ◽  
Factors Affecting ◽  
Valuation Method ◽  
Organic Products ◽  
Products Analysis ◽  
Jasmine Rice ◽  
The City

Purpose – The purpose of this paper is to investigate factors affecting consumers’ willingness to pay (WTP) a premium for organics. Design/methodology/approach – A self-administered questionnaire was used to collect data at five retail stores in metropolitan Bangkok. Exploratory factor analysis and the double-bound contingent valuation method were used for analysis. Findings – Results indicate WTP premiums of 88, 51 and 51 per cent for kale, jasmine rice and pork, respectively. Analysis indicates that respondents are willing to pay a premium if they have already purchased organic products, have good health, strong ethical and environmental concerns, think that organic products provide greater quality and health benefits, and reside in the city. Respondents with children, however, are less likely to pay a premium for organic products. Analysis also indicates that the price premium hinders purchase. Practical implications – Efforts should be made by policymakers, together with marketers and producers, to lower the price of organic products to attract more consumers. Originality/value – To enlarge the organic market, one must understand consumers’ preferences for organic products and the premium they will pay for them. This is not well-researched. Though several studies have investigated consumers’ behaviour towards environmentally friendly products in Thailand, there is little research on WTP. This lack is a major impediment to the growth of organic consumption and the development of organic product markets.

Smallholder preferences and willingness-to-pay measures for microcredit

2018 ◽  
Vol 10 (3) ◽  
pp. 462-481 ◽  
Author(s):  
Zhao Ding ◽  
Awudu Abdulai
Keyword(s):  
Willingness To Pay ◽  
Interest Rates ◽  
Latent Class ◽  
Smallholder Farmers ◽  
Mixed Logit ◽  
Latent Class Models ◽  
Preference Heterogeneity ◽  
Content Type ◽  
Lower Interest Rate ◽  
Class Models

Purpose The purpose of this paper is to examine smallholders’ preferences and willingness to pay for microcredit products with varying attribute combinations, in order to contribute to the debate on the optimal design of rural microcredit. Design/methodology/approach Data used in this study are based on a discrete choice experiment from 552 randomly selected respondents. Mixed logit and latent class models are estimated to examine the choice probability and sources of preference heterogeneity. Endogenous attribute attendance models are applied to account for attribute non-attendance (ANA) phenomenon, focusing on separate non-attendance probability as well as joint non-attendance probability. Findings The results demonstrate that preference heterogeneity and ANA exist in the smallholder farmers’ microcredit choices. Averagely, smallholder farmers prefer longer credit period, smaller credit size, lower transaction costs and lower interest rate. Guarantor collateral method and installment repayment positively affect their preferences as well. Moreover, respondents are found to be willing to pay more for the attributes they consider important. The microcredit providers are able to attract new customers under the current interest rates, if the combination of attributes is appropriately adjusted. Originality/value This study contributes to the debate by assessing the preference trade-off of different microcredit attributes more comprehensively than in previous analyses, by taking preference heterogeneity and ANA into account.

scholarly journals Development of Agricultural Insurance of Crop Production in Regions of Southern Russia

2020 ◽  
pp. 183-194
Author(s):  
Ekaterina Shkarupa ◽  
Irina Anikina
Keyword(s):  
Crop Production ◽  
Crop Insurance ◽  
The State ◽  
Insurance Companies ◽  
Agricultural Crop ◽  
State Support ◽  
Agricultural Insurance ◽  
National Union ◽  
Mandatory Requirement ◽  
Southern Russia

State-supported agricultural insurance is a financial policy imperative in agricultural development. The purpose of the article is to study the current state of the development of agricultural insurance of crop production carried out with the state support of the regions of Southern Russia in order to determine the possibilities of expansion of its scope and increase of its accessibility. It was concluded that there had been significant changes in the market during the period under review. The article presents the analysis of agricultural insurance on the example of crop production carried out with the state support of Southern Russian regions. After 2014 there was a decrease in the activity in agricultural insurance both by insurers and insured. The dominant reason for a considerable drop in insurance in crop production has been the transformation of forms of state support for agricultural producers since 2017. It is the transfer to a “single subsidy”, which included all types of industry support costs that lead to the inability to pay crop insurance premiums in many regions, in particular South Russia. It should be noted that since 2016 there has been a decrease in the number of insurance copmpanies that have carried out insurance with state support. This was a result of the tightening of control over insurers by the Bank of Russia and the emergence of a mandatory requirement of membership in the National Union of Agricultural Insurers to those insurance companies that insured producers with government support. Thus, the changes of the terms of insurance subsidies became a threat to this form of support. Recently, there has been some modification of this form of support for the industry, and the task of the state is to consolidate this trend. The study concluded that the attraction of more insurance companies to regional markets, involvement of representatives of medium and small businesses in the agricultural risk insurance system, increased flexibility of insurance conditions with state support and improved quality of insurance payment procedures, possibility to independently determine the increasing factor for arable lands, compensatory subsidies written into agricultural crop insurance contracts will facilitate the access to this measure and expansion of this form of support.

scholarly journals UK consumers' willingness to pay for laying hen welfare

2020 ◽  
Vol 122 (9) ◽  
pp. 2867-2880
Author(s):  
Chloe Dunne ◽  
Christie Siettou
Keyword(s):  
Willingness To Pay ◽  
Online Survey ◽  
Mixed Logit ◽  
Laying Hen ◽  
Egg Laying ◽  
Content Type ◽  
Welfare Losses ◽  
Eggshell Colour ◽  
Beak Trimming ◽  
Logit Regression Model

PurposeThis study investigates UK consumers’ perception and willingness to pay (WTP) for egg attributes associated with laying hen welfare, namely with beak-trimming practices and injurious feather pecking (IP). The aim is to examine any change in WTP after improved consumer awareness.Design/methodology/approachBuilding upon existing literature, the authors designed an online survey in which the method of discrete choice experiment (DCE) was employed. The study includes two identical DCEs with the second being introduced after respondents were presented with an educational excerpt about beak-trimming practices, on farm IP occurrence and the docile nature of white egg laying hens – reducing IP.FindingsThe mixed logit regression model demonstrated that consumers' WTP for egg attributes associated with beak trimming and IP decreased in the second DCE (12.6% for organic and 2.55% for free-range). For eggshell colour, the analysis revealed a shift from a preference to brown eggs to indifference between eggshell colours.Originality/valueOverall, UK consumers have a preference in higher hen welfare resulting in a decrease in WTP once they are aware of welfare losses in current systems; however, more insights are required in terms of the promotion of white shelled eggs as a means of reducing IP on UK farms.

Farmer knowledge and willingness to pay for soil testing in Haiti

2018 ◽  
Vol 45 (7) ◽  
pp. 1109-1121
Author(s):  
Senakpon Kokoye ◽  
Joseph Molnar ◽  
Curtis Jolly ◽  
Dennis Shannon ◽  
Gobena Huluka
Keyword(s):  
Willingness To Pay ◽  
International Development ◽  
Latent Variables ◽  
Choice Model ◽  
Structural Equations ◽  
Soil Testing ◽  
Farm Size ◽  
Content Type ◽  
Factors Affecting ◽  
Fertilizer Use

Purpose The purpose of this paper is to investigate factors affecting farmers’ perceptions and knowledge of soil testing benefits and fertilizers use in Northern Haiti. Design/methodology/approach Data were collected from 452 farmers within 17 localities in Northern Haiti. The findings reveal that farmers currently have little or no knowledge of soil testing benefits and but know better about fertilizer use. The soil testing benefits and knowledge on fertilizers use were collected using Likert scale. Analyses were done using structural equations model and choice model. Findings Factors such as farm size, participation in project, rice, banana and cocoa growers, affect farmers’ perceptions and knowledge of soil testing benefits. Factors affecting willingness to pay include group membership, type of crops grown, whether farmer’ land is on the slope, his farm size and whether he participates in the US Agency for International Development (USAID) project. Knowledge on fertilizer use is influenced by rice and banana growers, fertilizer use, participation in soil testing program and AVANSE/USAID. The effects of both latent variables are found to be positive but non-significant. Practical implications As policy implication; farmers need training module to be better informed on soil testing benefits. Originality/value Soil testing is a novel agricultural input that is being popularized in developing countries. For sustainability of the laboratory to be installed, this study is needed to fill the gap in research on farmers’ behaviors toward and demand of soil testing in Northern Haiti.

Minority community willingness to pay for earthquake insurance

2018 ◽  
Vol 27 (5) ◽  
pp. 556-572 ◽  
Author(s):  
Chun-Min Zhang ◽  
Zhen-Wei Qian
Keyword(s):  
Risk Perception ◽  
Willingness To Pay ◽  
Ethnic Minority ◽  
Affecting Factors ◽  
Earthquake Insurance ◽  
Minority Communities ◽  
Content Type ◽  
Factors Affecting ◽  
Minority Community ◽  
Government Aid

PurposeThe purpose of this paper is to investigate the relationship between potential affecting factors and the local communities’ willingness to pay (WTP) for housing earthquake insurance (HEI) in the context of ethnic minority communities.Design/methodology/approachA literature review was done to identify possible factors affecting WTP for HEI. Fieldwork was conducted in 2017 in Dali Minority Autonomous Prefecture, where the first Chinese HEI was launched in 2015. Interviews were done in two earthquake-prone counties, as the main ethnic minority communities in the area. A total of 536 questionnaires were collected and used as empirical data for testing the impacts mechanism.FindingsRespondents’ risk perception, risk exposure, self-prevention behaviors, government aid, insurance experience and sociodemographic characteristics were hypothesized as theoretical indicators correlated to WTP for HEI. Empirical analysis results predict that WTP for HEI is significantly influenced by risk perception, insurance experience, government aid, and age and out-migrating labors. It is evident that higher risk perception and more insurance experience lead to stronger desire for HEI coverage. However, dependency on government aid negatively affects WTP for HEI. Moreover, WTP for HEI is negative in relation to age and out-migrating labors. Surprisingly, ethnic-culture factors were not statistically significant to WTP for HEI.Originality/valueThis paper is an attempt to identify and verify factors affecting WTP for HEI, bridging the gap of inadequate research on WTP for HEI in ethnic minority communities.

Accounting legislation, corporate governance codes and disclosure in Jordan: a review

2017 ◽  
Vol 59 (1) ◽  
pp. 147-176 ◽  
Author(s):  
Ayman E. Haddad ◽  
Wafaa M. Sbeiti ◽  
Amer Qasim
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Descriptive Analysis ◽  
Accounting Education ◽  
Insurance Companies ◽  
Economic Changes ◽  
Content Type ◽  
Factors Affecting ◽  
Corporate Governance Codes ◽  
Disclosure Practice

Purpose The main aim of this paper is to provide an overview of the most influential economic changes and accounting legislation affecting financial reporting and disclosure practices in Jordan. It also provides an overview of disclosure studies conducted in Jordan covering the year(s) between 1986 and 2014 to investigate whether there is an improvement in disclosure practice in Jordan. This paper also investigates the most influential firm characteristics affecting disclosure practices in Jordan found in prior disclosure studies that were conducted in Jordan between 1986 and 2014. The paper also addresses the disclosure items required in Corporate Governance Codes that exist for listed shareholding companies, banks and insurance companies. Finally, the paper discusses the quality of accounting education in Jordan, as prior studies noted its impact on accounting practice. Design/methodology/approach Based on a review of prior disclosure studies conducted in Jordan between 1986 and 2014, this study compared the results of disclosure studies before and after 1998. In 1997, Jordan, as a result of economic changes, issued the Temporary Securities Law and its Directives of Disclosure, which came into effect in 1998. The law is considered as the turning point in the improvement of disclosure practice in Jordan. A trend line of disclosure practice is also used to investigate whether disclosure practice is improved after the issuance of this law. A descriptive analysis is also used to examine the factors affecting disclosure practice in Jordan. Findings Based on a review of prior disclosure studies, it was concluded that disclosure practices have improved overtime. It was also observed that that firm size as a factor has always affected the level of disclosure in Jordan and is followed by external auditing, while liquidity is found to have the least effect. It was concluded that economic changes, agreement with international organizations like the World Trade Organization (WTO) and the International Organization of Securities Commissions (IOSCO), new regulations and financial market reforms have improved disclosure practice in Jordan. It was also found that there is a need for further studies in disclosure practice that are not sufficiently covered in Jordan. Originality/value The study is based on a review of disclosure studies conducted in Jordan between 1986 and 2014. We investigate whether mandatory, voluntary, corporate social and internet disclosure practice improved over the last three decades in Jordan. This study is the first to provide evidence on the improvement of disclosure practices based on a review of disclosure studies in Jordan. The paper is expected to be a reference for disclosure studies in developing countries, Jordan in particular, as it summarized and criticized the weaknesses on disclosure practice and accounting legislations in Jordan.

Consumers’ attitudes and willingness to pay for organic eggs

2019 ◽  
Vol 122 (2) ◽  
pp. 678-692 ◽  
Author(s):  
Osman Inanç Güney ◽  
Luca Giraldo
Keyword(s):  
Regression Analysis ◽  
Willingness To Pay ◽  
Choice Experiment ◽  
Consumer Preferences ◽  
Mixed Logit ◽  
Consumer Attitudes ◽  
Experiment Design ◽  
Cross Sectional ◽  
Content Type ◽  
Egg Consumption

Purpose The purpose of this paper is to understand consumer attitudes toward organic eggs by identifying their profiles and estimating the degree of their willingness to pay (WTP) for eggs with different attributes in order to evaluate the position of organic eggs. Design/methodology/approach Empirical data were collected from a face-to-face cross-sectional market survey, which involved a choice experiment design and a series of questions related to respondents’ attitudes and preferences in terms of organic egg consumption. A total of 552 consumers who are responsible for their household purchases were sampled, while the survey was performed in the major cities of seven regions of Turkey. The gathered data from the questions on consumer attitudes and preferences were analyzed using ordered probit, while the choice experiment data were analyzed through the use of conditional logit and mixed logit models. Findings Consumers perceive organic eggs to be healthy, nutritious and delicious food. In the study, we obtained three consumer groups (collectivist consumers, individualist consumers and reluctant consumers) with different characteristics in relation to organic egg consumption. When the motivations for organic egg consumption were analyzed, it was found that individual benefits have a greater impact than collectivist benefits on consumers’ choice to purchase organic eggs. According to the results of the regression analysis, consumers are willing to pay ₺0.76 more per egg for organic eggs compared to conventional eggs. Overall, consumers are reluctant to pay a premium in view of the functionality aspect of eggs. Research limitations/implications The results will help the actors within the egg industry to develop production and market-planning processes for differentiated egg markets according to consumer preferences and in terms of having the opportunity to select their ideal customer segments. Originality/value The research is the first study that analyses the motivations and the willingness of Turkish consumers to purchase organic eggs through using a choice experiment design and regression models. Original findings include the segmentation of consumers according to personal beliefs and norms. The research is also important in terms of comparing two regression model results in methodical terms. The similarity among the obtained results from the regression analysis increased the reliability of the study.

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