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Abstract

Although numerous index insurance pilot programs have been conducted in China, little is known about Chinese farmers’ willingness to pay for index insurance. By using a field survey of small farm households in China’s Heilongjiang Province, which suffered a large flood in the summer of 2013, this paper explores farmers’ willingness to pay (WTP) for a hypothetical rainfall index insurance product, with a special interest in whether farmers affected by the flood are willing to pay more than those where not.

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