Journal of Forest Economics > Vol 24 > Issue 1

An empirical analysis of the factors influencing farmer demand for forest insurance: Based on surveys from Lin’an County in Zhejiang Province of China

Tao Qin, , Xuesong Gu, , Zhiwei Tian, , bjtzw@sina.com Huanxue Pan, , Jing Deng, , Li Wan, ,
 
Suggested Citation
Tao Qin, Xuesong Gu, Zhiwei Tian, Huanxue Pan, Jing Deng and Li Wan (2016), "An empirical analysis of the factors influencing farmer demand for forest insurance: Based on surveys from Lin’an County in Zhejiang Province of China", Journal of Forest Economics: Vol. 24: No. 1, pp 37-51. http://dx.doi.org/10.1016/j.jfe.2016.04.001

Published: 0/8/2016
© 0 2016 Tao Qin, Xuesong Gu, Zhiwei Tian, Huanxue Pan, ... Li Wan
 
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Keywords
JEL Codes:Q14
Forest insuranceInsurance demandInfluencing factorsLogit model
 

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In this article:
Introduction
Literature review
Theoretical hypothesis
Data sources and descriptive statistics
Model design and results discussion
Main conclusions and policy implications

Abstract

The lack of effective farmer demand is a major factor that restricts the development of China's forest insurance. To solve this problem, this study uses a Logit model to conduct an empirical analysis of relevant factors in the farmers’ demand for forest insurance, based on field survey data of Lin’an County, Zhejiang Province. The results show that the farmers’ understanding of forest insurance, the proportion of forestry revenues in the total household income, forest size, forest disaster frequency, forest insurance liability, insurance amount setup, and the farmers’ satisfaction regarding the premium subsidy policy, are the main factors that affect the farmers’ demand for forest insurance. Therefore, we propose to expand forest insurance promotion, raise the farmers’ income, rationally design insurance products, and optimize the forest premium subsidy policy to enhance the farmers’ willingness to participate in forest insurance.

DOI:10.1016/j.jfe.2016.04.001