In:
Agricultural Finance Review, Emerald, Vol. 83, No. 3 ( 2023-06-06), p. 511-527
Abstract:
Index insurance is promising to mitigate drought-related income losses in agriculture. To reduce the basis risk of index insurance, the integration of satellite data is of growing interest in research. The objective of this study is to obtain preliminary evidence regarding farmers' perceived usefulness (PU) of satellite-based index insurance. Design/methodology/approach By modifying the transtheoretical model of change to a transtheoretical model of PU, German farmers' gradual PU of satellite-based index insurance was investigated. Findings The results show that the average farmer perceives satellite-based index insurance as useful. It can be particularly seen that a higher level of education in an agricultural context as well as higher trust in index insurance products increases farmers' gradual PU. Moreover, higher relative weather-related income losses increase farmers' gradual PU. Research limitations/implications It is recommended to apply latent variables when conducting future investigations regarding farmers' PU. Originality/value To the best of the authors' knowledge, this is the first study to explore farmers' PU of upcoming satellite-based index insurance by modifying and applying the transtheoretical model in a new way.
Type of Medium:
Online Resource
ISSN:
0002-1466
DOI:
10.1108/AFR-10-2022-0125
Language:
English
Publisher:
Emerald
Publication Date:
2023
detail.hit.zdb_id:
2401135-6
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