Improving the economic sustainability of Italian farmers: An empirical analysis of decision-making models for insurance adoption

• Giulio Fusco ^[1] ; Yari Vecchio ^[2] ; Donatella Porrini ^[1] ; Felice Adinolfi ^[2]
  1. [1] University of Salento

     University of Salento

     Lecce, Italia

     
  2. [2] University of Bologna

     University of Bologna

     Bolonia, Italia

     
• Localización: New medit: Mediterranean journal of economics, agriculture and environment = Revue méditerranéenne d'economie, agriculture et environment, ISSN 1594-5685, Vol. 20, Nº. Extra 3, 2021 (Ejemplar dedicado a: Innovation and Sustainability of agri-food system in the Mediterranean area), págs. 53-68
• Idioma: inglés
• DOI: 10.30682/nm2103d
• Enlaces
  • Texto completo (pdf)
• Resumen

  • To achieve sustainability, agricultural insurance is one of the main tools capable of reducing the vulnerability of farmers. This is the reason it is important to investigate the different factors that affect the farmers’ agricultural insurance decision-making. The paper, using Regional panel data from Italy Regions and the GMM dynamic panel data model, examines the effect of different group variables on agricultural insurance decision making: risk perception and management, agricultural insurance recognition, trust and affordability. The aim of this paper is: (1) to analyze, through a systematic literature review, which are the main problems regarding agricultural insurance diffusion, (2) to measure which category of variables influences agricultural insurance adoption, (3) to provide different policy solutions to improve the diffusion of agricultural insurance in Italy. The results show that agricultural insurance affordability, risk perception and management are the major influencing factors; a possible solution to improve the agricultural insurance demands would be to raise household net income and find an alternative solution to subsidies.

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