Researchers at School of Economics Target Climate Change (Do Farmers Always Choose Agricultural Insurance Against Climate Change Risks?): Climate Change

2024 MAR 19 (NewsRx) -- By a News Reporter-Staff News Editor at Climate Change Daily News -- Investigators publish new report on Climate Change. According to news reporting from Guangzhou, People’s Republic of China, by NewsRx journalists, research stated, “In response to climate change, many countries are introducing agricultural insurance. But will farmers buy more agricultural insurance as climate change deepens? The literature has shown that climate change has a significantly positive impact on agricultural insurance.”

Financial support for this research came from Ministry of Research, Innovation and Digitization - Romania.

The news correspondents obtained a quote from the research from the School of Economics, “Using data from China over the period 2012-2021, we examine the effects of climate change (CC) on agricultural insurance coverage (AIC). We find that CC does not always have a positive impact on AIC; instead, farmers’ insurance choices depend on the difference between their total costs and earnings. Only when total earnings are greater than total costs will farmers choose agricultural insurance. Compensation and subsidies are components of total earnings and premiums are components of total costs. They are affected by the government’s insurance policies and charging standards and insurance companies’ compensation schemes.”

According to the news reporters, the research concluded: “This study examines the factors that affect farmers’ insurance choices and recommends strategies for improving agricultural insurance.”

This research has been peer-reviewed.

For more information on this research see: Do Farmers Always Choose Agricultural Insurance Against Climate Change Risks? Economic Analysis and Policy, 2024;81:617-628. Economic Analysis and Policy can be contacted at: Elsevier, Radarweg 29, 1043 Nx Amsterdam, Netherlands.

Our news journalists report that additional information may be obtained by contacting Jiao Wang, Guangzhou Coll Commerce, School of Economics, Guangzhou, People’s Republic of China. Additional authors for this research include Ji-Le Sun, Yi-Fei Wang, Jia-Yi Li and Ran Tao.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.eap.2023.12.019. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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