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Extreme Weather, agricultural insurance and farmer's climate adaptation technologies adoption in China

Author

Listed:
  • Mao, Hui
  • Sun, Zhenkai
  • Chai, Anyuan
  • Fang, Lan
  • Shi, Chaoqian

Abstract

We explore how farmers adjust their climate adaptation behaviors and participation in agricultural insurance in response to extreme weather events. A random effects model is constructed to clarify the relationships between extreme weather events, agricultural insurance and climate adaptation technologies (CAT). Using survey data from 622 farmers in China, Probit models and instrumental variable analysis show that extreme weather events significantly increase farmers' adoption of CAT and their participation in agricultural insurance. Furthermore, agricultural insurance significantly promotes farmers' adoption of CAT. Agricultural insurance influences the adoption of CAT through both substitutive and complementary effects, the complementary effects are more pronounced. Therefore, we recommended the continued promotion of CAT and agricultural insurance to strengthen farmers' resilience to extreme weather events.

Suggested Citation

  • Mao, Hui & Sun, Zhenkai & Chai, Anyuan & Fang, Lan & Shi, Chaoqian, 2025. "Extreme Weather, agricultural insurance and farmer's climate adaptation technologies adoption in China," Ecological Economics, Elsevier, vol. 228(C).
    • Handle: RePEc:eee:ecolec:v:228:y:2025:i:c:s0921800924003537
    DOI: 10.1016/j.ecolecon.2024.108456
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    More about this item

    Keywords

    Climate change; Extreme weather; Agricultural insurance; Climate adaptation technologies;
    All these keywords.

    JEL classification:

    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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