Stimulating Technology Adoption among Low-Income Farmers: A New Index Insurance Design
Type
conference paper
Date Issued
2023-08-07
Author(s)
Abstract
Insurance enables risky investments in new technologies and innovation. Without insurance, low-income farmers decrease agricultural technology investments to limit their uninsured exposure and do not adopt beneficial technologies. This leads to the persistent low-risk, low- return farming cycle. However, traditional index insurance typically has very low uptake rate. Low financial literacy and limited liquidity are commonly identified causes in the literature. This paper designs a novel insurance taking the form of index-based credit exemption to address the two causes. We will examine this new design via a theoretical model of risky input choice, an artifactual experiment, and potentially a randomized field experiment.
Language
English
Event Title
ARIA 2023 Annual Meeting
Event Location
Washington DC
Event Date
2023.08.07-2023.08.09