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Article

Tao Ye, Ming Wang, Wuyang Hu, Yangbin Liu and Peijun Shi

Understanding farmers’ preferences for crop insurance attributes is crucial in designing better insurance products and guiding government policies but such research is…

Abstract

Purpose

Understanding farmers’ preferences for crop insurance attributes is crucial in designing better insurance products and guiding government policies but such research is lacking, particularly in developing countries. The paper aims to discuss these issues.

Design/methodology/approach

This study uses a survey featuring a discrete choice experiment and policy simulation.

Findings

Overall, crop insurance has positive values to farmers, although preference is heterogeneous based on socioeconomic characteristics and risk position. Policy simulation confirms the roles of liability in strengthening insurance participants’ welfare and premium subsidy in encouraging participation. Introducing one more product into the market can accommodate farmers’ diverse needs and lead to increases in both aggregated social welfare and participation while maintaining the current level of government expense in subsidy – a potential Pareto improvement.

Research limitations/implications

Methodology employed is not the most novel in the choice experiment literature as many of the advances in choice experiment design could not be applied due to the actual condition in rural China and Chinese farmers’ capability in understanding the experiment.

Practical implications

The results indicate that the current single-product market structure using “low liability with high premium subsidies” cannot accommodate the diverse needs among farmers. Providing more varieties of liability-subsidy combinations, e.g. a high liability with low premium subsidy insurance product, can substantially improve participants’ welfare with little impact to the probability of participation.

Originality/value

The authors believe that this is one of the very few studies that that analyze farmers’ preferences and willingness to pay for the attributes of crop insurance products. It also shows how crop insurance product design can build upon farmers’ choices to achieve a potential Pareto improvement in aggregated social welfare in the context of a fast-developing crop insurance market.

Details

China Agricultural Economic Review, vol. 9 no. 4
Type: Research Article
ISSN: 1756-137X

Keywords

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Article

Yanyuan Zhang, Wuyang Hu, Jintao Zhan and Chao Chen

The purpose of this paper is to examine farmer preference for swine price index insurance in China focusing on whether Chinese farmers are willing to consider purchasing…

Abstract

Purpose

The purpose of this paper is to examine farmer preference for swine price index insurance in China focusing on whether Chinese farmers are willing to consider purchasing swine price index insurance, the premium they would like to pay, as well as the extend of heterogeneity in their preferences.

Design/methodology/approach

A sample of 443 swine farmers in Jiangsu and Henan provinces is collected and analyzed. An Ordered Probit model is used to analyze farmers’ willingness to buy swine price index insurance and a Tobit model is used to analyze farmers’ willingness to pay (WTP) for insurance premium.

Findings

Results show that some farmers are not willing to purchase swine price index insurance. However, WTP of majority of farmers is higher than what is prescribed in the current insurance policy. Factors affecting farmers’ willingness to buy varied between two provinces. Experience in purchasing traditional swine insurance and risk perception affect farmers’ willingness to buy in Jiangsu province, while joining agricultural cooperatives, experience in purchasing traditional swine insurance and understanding of swine price index insurance affect farmers’ willingness to buy in Henan province. Farmers with non-agricultural income, longer years of swine breeding, higher degree of specialization, experience in purchasing traditional insurance, higher understanding of swine price index insurance and trust in local governments, stronger risk perception and risk preference, and not being a member of agricultural cooperatives have higher WTP.

Originality/value

Few studies have been conducted on swine price index insurance in China. Even less information, to the authors’ knowledge, is available on farmer preferences. The research provides a timely contribution to understand the Chinese swine price index insurance market from the perspectives of farmers.

Details

China Agricultural Economic Review, vol. 12 no. 1
Type: Research Article
ISSN: 1756-137X

Keywords

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Article

Mo Chen, Yiqin Wang, Shijiu Yin, Wuyang Hu and Fei Han

The organic food sold in China can bear organic labels from different countries/regions. The purpose of this paper is to assess the trust and preferences of consumers for…

Abstract

Purpose

The organic food sold in China can bear organic labels from different countries/regions. The purpose of this paper is to assess the trust and preferences of consumers for tomatoes carrying these different labels.

Design/methodology/approach

The data came from real choice experiments conducted in Shandong Province, China. A mixed logit model was used to analyze consumer willingness to pay (WTP).

Findings

Results indicated that, among the four organic labels considered in this study, the highest WTP was expressed for organic label from the European Union, followed by Hong Kong’s organic label, Japanese organic label and, lastly, by the Chinese mainland organic label. Consumer trust has a positive effect on their WTPs for the four organic labels. Providing consumers with information on organic can significantly lift their WTPs, and reduce the gaps between WTPs for different organic labels.

Originality/value

This research is of academic value and of value to food suppliers. International food marketers are recommended to equip their products with proper organic labels and initiate additional consumer education.

Details

British Food Journal, vol. 121 no. 7
Type: Research Article
ISSN: 0007-070X

Keywords

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Article

Keqiang Wang, Hongmei Liu, Wuyang Hu and Linda Cox

Dolphin excursions have become increasingly popular worldwide. Many past studies assessing the value of dolphin excursions use choice-based methods such as the conjoint…

Abstract

Purpose

Dolphin excursions have become increasingly popular worldwide. Many past studies assessing the value of dolphin excursions use choice-based methods such as the conjoint analysis. However, this method is often criticized as being hypothetical. The purpose of this paper is to describe a relatively low cost but effective approach to enhance understanding of consumer preference obtained by conjoint analysis. The method relies heavily on using internet-based survey tools.

Design/methodology/approach

Enabled by an online tool, individuals are asked to self-explicate their preferred alternatives using the same attributes as are found in the conjoint design. The difference between the self-constructed, preferred alternatives and those offered in conjoint experiment are incorporated into choice models. Unlike previous research where only rough estimates can be provided, the proposed method allows precise capture of respondents’ preferred alternative through the automated online survey design.

Findings

Results show that although the extra effort involved in data collection is small, the gain in model fit, choice interpretation, and the value (welfare) estimation is sizeable. Evidence indicates that consumers would be willing to pay up to $50 more for adventurous excursions and guarantees that they will interact with dolphins could worth up to $70 per trip. The approach presented in this paper can also serve as a method to test for preference consistency.

Originality/value

This study is the first using an online survey to assess values associated with dolphin excursion. It describes the benefit of involving online tools to enhance modeling and interpretation of consumer behavior. Applications of internet-based surveys on household consumer products are abundant (such as food and electronics) but this study offers a much less discussed application in environmental service.

Details

Internet Research, vol. 26 no. 3
Type: Research Article
ISSN: 1066-2243

Keywords

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Article

Shang-Ho Yang, Ping Qing, Wuyang Hu and Yun Liu

The purpose of this paper is to investigate Chinese consumers’ willingness-to-pay (WTP) for fair trade coffee given different amount of product information. Although…

Abstract

Purpose

The purpose of this paper is to investigate Chinese consumers’ willingness-to-pay (WTP) for fair trade coffee given different amount of product information. Although coffee is becoming more popular in China, the concept of fair trade is often found unfamiliar to most Chinese consumers.

Design/methodology/approach

A total of 564 consumers were interviewed in Hubei, China. The key survey question asked consumers’ willingness to purchase a cup of fair trade coffee compared to a traditional cup of coffee. A modified payment card approach was used to elicit WTP. Before answering the purchase question, respondents were randomly assigned to one of three different information scenarios: basic definition, impact on sustainability and the environment, and information including both environmental and social implications.

Findings

Results indicated that consumers were generally willing to pay additional amount for fair trade coffee. Information played an important role in determining what types of consumers were responsive to fair trade coffee. Furthermore, the amount of information provided and consumer WTP did not follow a linear relationship.

Practical implications

Results obtained in this study are useful for coffee marketers to better target their promotion strategies.

Originality/value

In contrast to China's fast growing coffee market, little is known about consumer preferences and far less on fair trade coffee. This study is the first of its kind to understand Chinese consumers’ preferences for coffee in general and for fair trade coffee in specific.

Details

China Agricultural Economic Review, vol. 6 no. 2
Type: Research Article
ISSN: 1756-137X

Keywords

Abstract

Details

China Agricultural Economic Review, vol. 10 no. 1
Type: Research Article
ISSN: 1756-137X

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Article

Xiaoyong Xiao, Qingsong Tian, Shuxia Hou and Chongguang Li

The purpose of this paper is to investigate the influence of economic policy uncertainty (EPU) on China’s grain futures prices. Related literature has discussed several…

Abstract

Purpose

The purpose of this paper is to investigate the influence of economic policy uncertainty (EPU) on China’s grain futures prices. Related literature has discussed several factors contributing to the dramatic boom and bust in China’s grain futures prices, but has overlooked the influence of EPU.

Design/methodology/approach

The study employs a newly developed time-varying parameter vector autoregressive model to study and contrast the impact of different types of uncertainty on China’s grain futures prices. The directional volatility spillover index is used to measure the impact of EPU on China’s grain futures prices and compare the differences among commodities.

Findings

The results show that EPU affects China’s grain futures prices significantly. The 2008 global financial crisis had stronger influence on China’s grain futures prices than other types of uncertainty. Furthermore, EPU has smaller influence on wheat futures price than on maize and soybean. The Chinese Government interventions may be the reason for this difference.

Originality/value

This study addresses the lack of empirical investigation on the influence of EPU on China’s grain futures price volatility.

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Article

Qihui Chen, Gaoshuai Liu and Yumei Liu

The purpose of this paper is to examine Chinese consumers’ level of perception of genetically modified (GM) foods and the determinants of their willingness to pay (WTP…

Abstract

Purpose

The purpose of this paper is to examine Chinese consumers’ level of perception of genetically modified (GM) foods and the determinants of their willingness to pay (WTP) for Fad-3 GM lamb, a newly developed GM product.

Design/methodology/approach

Based on a randomized choice experiment involving 576 consumers in Beijing, the authors adopt a double-bounded contingent valuation method to estimate consumers’ WTP for Fad-3 GM lamb, as well as the causal impact of (randomized) product-information disclosure on it.

Findings

The econometric result indicates that the randomly disclosed product information describing details about Fad-3 GM lamb, the potential risks associated with the consumption of it, and the related governmental regulation policies raised consumers’ WTP by 6.2 yuan per Jin (or US$2/kilogram).

Originality/value

This paper provides new experimental evidence of the effect of product-information disclosure on consumers’ WTP for a newly developed GM food product.

Details

China Agricultural Economic Review, vol. 9 no. 3
Type: Research Article
ISSN: 1756-137X

Keywords

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