Papers and Presentations

Paper: Willingness to Pay for Insured Loans in Northern Ghana

Index insurance has been heralded as a potential solution to systemic risks faced by smallholder farmers in developing countries by covering risks such as drought, low crop yields, and low market prices. However, adoption has been low in early experiments. Here, willingness to pay for drought index insurance backed loans is investigated using contingent valuation methodology. Our results demonstrate that on average the sample population has a willingness to pay high enough to sustain a market viable insured loan product without subsidization with 56% of the target population expressing a willingness to pay for an insured loan at the market price.