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A Contingent Valuation Study on Indonesian Farmers? Willingness to Accept Compensation for Poultry

Published by:
Publication date
Type of Publication:
Working Papers & Briefs
Focus Region:
Asia and the Pacific
Focus Topic:
Rural Finance / Insurance
Type of Risk:
Biological & environmental
Yakhshilikov, Y.; Birol, E.; Tiongco, M.; Narrod, C.; Friedman, J.

This brief presents the results of a contingent valuation (CV) study that aimed at capturing farmers’ willingness to accept (WTA) compensation for birds with three different health statuses due to an HPAI outbreak: 1) healthy, 2) risky, or 3) sick. The differences among farmers’ willingness to accept compensation for these three types of birds could indicate the extent of the economic costs that may be borne by farmers in the case of an HPAI outbreak. Moreover, the WTA compensation levels could be used to inform the design of efficient, effective, and equitable compensation schemes. This study also investigated the impact of farmers’ knowledge, attitudes, and perceptions (KAP) of HPAI as well as their poultry-production and household-level characteristics on their WTA compensation (i.e., the HPAI costs that they would bear).