Abstract:

【Objective】 The applicability of technique applied in banana windstorm insurance of China to induce the greatest willingness to pay of contingent valuation was explored, and the decision basis was provided for policy makers to adjust and perfect the financial subsidy system of banana windstorm insurance. 【Method】 Based on the field survey of 681 banana planters in Hainan province, the optimum questionnaire format of CVM, dichotomous choice format was adopted, using the single-bounded and double-bounded dichotomous contingent valuation technique to estimate the optimal size of financial subsidies to banana windstorm insurance accurately. 【Result】 The results show that the mean greatest willingness to pay of premium rate single-bounded and double-bounded estimation were 19.25% and 17.54%, respectively. The 95% confidence interval of greatest willingness to pay estimated by these two questionnaire formats were 18.77%-19.79% and 16.89%-17.72%, respectively. 【Conclusion】 Compared with the single-bounded questionnaire format, the double-bounded questionnaire format could obtain more information about the respondents′ willingness to pay, hence, it reduces the confidence interval range and improves the estimation accuracy of the greatest willingness to pay. At the pilot practice for three continuous years, the percent of banana windstorm insurance pilot size in the total banana planting area was less than 10% in Hainan. Combined with this research result, the author holds that Hainan finance should strength the subsidy to banana windstorm insurance on the basis of 30% subsidy in two continuous years of 2007 and 2008, and the subsidy percentage should try to achieve 40%. At the same time, the premium rate should not be too low, 18% is suitable. According to this, the author puts forward two recommendations of promoting the sustainable development of agricultural insurance: To build a long-term mechanism of financial support for policy-oriented agricultural insurance and build a moderate mandatory policy-oriented agricultural insurance system.

Key words: CVM, dichotomous choice format, financial subsidies, banana windstorm insurance