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Willingness to Pay for a Potential Insurance Policy: Case Study of Trout Aquaculture

Published online by Cambridge University Press:  15 September 2016

Saleem Shaik ,
Keith H. Coble ,
Darren Hudson ,
James C. Miller ,
Terrill R. Hanson  and
Stephen H. Sempier
Saleem Shaik
Affiliation:
Department of Agribusiness and Applied Economics at North Dakota State University in Fargo
Keith H. Coble
Affiliation:
Department of Agricultural Economics at Mississippi State University in Mississippi State
Darren Hudson
Affiliation:
Department of Agricultural Economics at Mississippi State University in Mississippi State
James C. Miller
Affiliation:
Department of Agricultural Economics at Mississippi State University in Mississippi State
Terrill R. Hanson
Affiliation:
Department of Agricultural Economics at Mississippi State University in Mississippi State
Stephen H. Sempier
Affiliation:
Gulf of Mexico Regional Research Planning Coordinator for the Mississippi-Alabama Sea Grant Consortium at the University of Southern Mississippi and is based in Mississippi State
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Abstract

Using trout producer survey data and the contingent valuation method, we estimate willingness to pay for a potential insurance policy. The survey was conducted in 2005 across the United States; 268 producers completed the survey instrument, resulting in a response rate of 81 percent. Design of the contingent valuation method takes into account two coverage levels and four premium rates. Using standard willingness-to-pay techniques, we assess the premium rate that producers with varying practices and regions are willing to pay for two different coverage levels of insurance. In general, trout producers appear willing to pay premium rates of 2 to 11 percent for these coverage levels.

Keywords

willingness to paysubjective elicitationsurvey dataaquaculture trout insurance
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 37 , Issue 1 , April 2008 , pp. 41 - 50
Copyright
Copyright © 2008 Northeastern Agricultural and Resource Economics Association 

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