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Assessing Peer Influence on Farmers’ Climate Adaptations: An Experimental Adoption of Index Insurance and Savings in Uzbekistan

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  • Moritz, Laura
  • Kuhn, Lena
  • Bobojonov, Ihtiyor
  • Glauben, Thomas

Abstract

Strengthening climate resilience requires farmers to select climate adaptation strategies like weather index insurance. Acknowledging that decision-making is not isolated, this study explores simultaneous peer imitation in climate adaptation choices consisting of index insurance, savings, and their interaction. We present results from a lab-in-the-field experiment that introduces innovative index insurance. Findings indicate significant and strong imitation attitudes. While the bigger peer surrounding seems relevant in the static perspective, the closer surrounding gains importance in the dynamic perspective. Additionally, credit, trust, and practical understanding stimulate adoption. Community-based extension interventions and credit-bundled products may increase index insurance diffusion and improve climate resilience.

Suggested Citation

  • Moritz, Laura & Kuhn, Lena & Bobojonov, Ihtiyor & Glauben, Thomas, 2024. "Assessing Peer Influence on Farmers’ Climate Adaptations: An Experimental Adoption of Index Insurance and Savings in Uzbekistan," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 56(1), pages 1-20, February.
    • Handle: RePEc:cup:jagaec:v:56:y:2024:i:1:p:1-20_1
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    More about this item

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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