Risk preferences under heterogeneous environmental risk

Konferenzbeitrag

We elicit risk preferences and their determinants through a survey and field experiments for cattle farmers in Namibia who are subject to heterogeneous environmental risk. Survey data is complemented with precipitation data simulated by a climate model to analyze the relationship between risk preferences and individual precipitation risk. We find that risk aversion is inversely related to precipitation risk. When considering individual opportunity sets we find that background risk is not heterogeneous and that liquidity constraints do not influence risk aversion. The observed pattern in behavior towards risk and the interaction with environmental risk can thus be attributed to preferences.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Measuring Risk Preferences ; No. G6-V1

Classification and Topics

• Classification: Wirtschaft ; Criteria for Decision-Making under Risk and Uncertainty ; Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets ; Ecological Economics: Ecosystem Services; Biodiversity Conservation; Bioeconomics; Industrial Ecology
• Subject: risk preferences ; environmental risk ; experimental elicitation

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Olbrich, Roland ; Baumgärtner, Stefan ; Quaas, Martin F. ; Haensler, Andreas
• Event: Veröffentlichung
• (who): Verein für Socialpolitik
• (where): Frankfurt a. M.
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/37449
• Last update: 10.03.2025, 11:41 AM CET