Determinants of Willingness to Pay for the Shrimp Insurance of Farming Households in Baclieu Province

Abstract

The article uses the model of multivariate linear regression based on least squares method (OLS) to estimate the factors affecting the level of willingness to pay for farming households in Bac Lieu province. At the same time, the authors used random evaluation method (CVM) based upon the random parameter model of the Haab and McConnell (2002) to estimate the level of willingness to spend on insurance of farm shrimp on the given location, matching the method parameters (WTP) to measure the level of willingness to pay. The findings shown that the premium rate, education level, age of householder, income, participation previous time have direct influence to willingness to pay of farmers in the given province. Thus, possible solutions to improve insurance information and programme development need to be addressed.