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Preferences for index-based pasture insurance : a choice experiment in Limpopo Province, South Africa
Dissertation (MSc (Agricultural Economics))--University of Pretoria, 2022.
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| Format: | Thesis |
| Language: | English |
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University of Pretoria
2022
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| _version_ | 1867613497987170305 |
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| access_status_str | Open Access |
| author2 | Karuaihe, Selma Tuemumunu |
| author_browse | Karuaihe, Selma Tuemumunu |
| author_facet | Karuaihe, Selma Tuemumunu |
| collection | Thesis |
| dc_rights_str_mv | © 2022 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. |
| description | Dissertation (MSc (Agricultural Economics))--University of Pretoria, 2022. |
| format | Thesis |
| id | oai:repository.up.ac.za:2263/86055 |
| institution | University of Pretoria (South Africa) |
| language | English |
| last_indexed | 2026-06-10T12:37:05.780Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UPSpace — University of Pretoria Institutional Repository |
| publishDate | 2022 |
| publishDateRange | 2022 |
| publishDateSort | 2022 |
| publisher | University of Pretoria |
| publisherStr | University of Pretoria |
| record_format | dspace |
| source_str | UPSpace — University of Pretoria Institutional Repository |
| spelling | oai:repository.up.ac.za:2263/86055 Preferences for index-based pasture insurance : a choice experiment in Limpopo Province, South Africa Karuaihe, Selma Tuemumunu manganyi.bernard@gmail.com Jourdain, Damien Manganyi, Bernard Drought Discrete Choice Experiment Loss Aversion Risk Aversion Index-based Pasture Insurance Subsistence Livestock Farmers UCTD Dissertation (MSc (Agricultural Economics))--University of Pretoria, 2022. The impact of climate change intensifies drought risk, severely threatening subsistence farmers in developing countries. To deal with the effect of drought, subsistence farmers rely heavily on traditional mitigation and coping mechanisms; however, they are proved inefficient in dealing with the complete impact of drought. In this view, policymakers are increasingly interested in promoting Index-based Pasture Insurance (IBPI). This study’s main objective is to assess the preferences of subsistence livestock farmers for IBPI. A discrete choice experiment approach and other survey methods (incentivised lottery games and self-reported risk preferences based on a Likert scale) were used to elicit preferences for insurance contracts, farmers' risk tolerance, and loss aversion. Data collection covered 110 subsistence livestock farmers identified using a simple random sampling method. Results show that sampled subsistence livestock farmers have a positive attitude towards IBPI contracts that hedge against drought-related pasture degradation. The conditional Logit (CL) model shows that farmers derive positive marginal utility from contracts that reimburse with feed and vouchers relative to cash and prefer transparent contracts. They also derive negative marginal utility from basis risk and premium as expected. At the same time, Latent Class (LC) model shows that farmers exhibit heterogeneous preferences for IBPI. Furthermore, farmers are loss-averse and medium risk-averse; however, loss aversion and risk-aversion did not significantly influence farmers' preference for IBPI. Therefore, the main recommendation for insurance providers is to consider the customisation of identified IBPI attributes when designing IBPI schemes to increase the likelihood of adoption by subsistence farmers. Food and Beverages Manufacturing Sector Education and Training Authority (FoodBevSETA) Bill and Melinda Gates Foundation (BMGF) Agricultural Economics, Extension and Rural Development MSc (Agricultural Economics) Unrestricted 2022-07-06T13:26:12Z 2022-07-06T13:26:12Z 2022-09 2022-04 Dissertation * S2022 https://repository.up.ac.za/handle/2263/86055 10.25403/UPresearchdata.20171345 en © 2022 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria. application/pdf University of Pretoria |
| spellingShingle | Drought Discrete Choice Experiment Loss Aversion Risk Aversion Index-based Pasture Insurance Subsistence Livestock Farmers UCTD Preferences for index-based pasture insurance : a choice experiment in Limpopo Province, South Africa |
| title | Preferences for index-based pasture insurance : a choice experiment in Limpopo Province, South Africa |
| title_full | Preferences for index-based pasture insurance : a choice experiment in Limpopo Province, South Africa |
| title_fullStr | Preferences for index-based pasture insurance : a choice experiment in Limpopo Province, South Africa |
| title_full_unstemmed | Preferences for index-based pasture insurance : a choice experiment in Limpopo Province, South Africa |
| title_short | Preferences for index-based pasture insurance : a choice experiment in Limpopo Province, South Africa |
| title_sort | preferences for index based pasture insurance a choice experiment in limpopo province south africa |
| topic | Drought Discrete Choice Experiment Loss Aversion Risk Aversion Index-based Pasture Insurance Subsistence Livestock Farmers UCTD |
| url | https://repository.up.ac.za/handle/2263/86055 |