The Impact of Implementing Insurance on Cobia Cage Aquaculture Producers’ Production Decision in Taiwan
Date Issued
2004
Date
2004
Author(s)
Lin, Chin-Min
DOI
zh-TW
Abstract
The offshore cage aquaculture is the fishery which the government popularized and developed actively in recent years. However, the manner of cultivation it utilize the sea as field is deeply influenced by natural calamity and environmental changes. In Taiwan, due to northeastern monsoon in winter and typhoon in summer, the offshore cage aquaculture is operated at a high risk. In order to increase the competitiveness of offshore cage aquaculture of our country to compete with foreign countries with advanced cage aquaculture, we should not only continuously strengthen the research development of production technology and equipment, but reduce the production cost, as well as setting up an insurance, which is suitable for the industry to reduce risk, so as to make producers relieved in producing, expand cultivated scale and increase the outputs.
It is indicated in many literatures that insurance could lower the risk which producers may face in Taiwan. Some foreign literatures also point out that insurance will influence farmer’s production decisions, and the degree of impacts depends on the risk attitudes that the farmers hold. We find that there is no literature trying to analyze the risk attitude of cobia cage aquaculture producers. Furthermore, there is no literature trying to analyze the impacts of implementing insurance on the producers’ production decisions in the situation that the risk attitude of cobia cage aquaculture producers are known. Nowadays, the cobia is the main type of fish in offshore cage aquaculture in Taiwan. As a result, this research is trying to analyze the risk attitudes of the cobia cage aquaculture producers, and analyze the impacts of implementing insurance on cobia cage aquaculture producers’ production decisions. We hope that the result of this research can provide the government for reference of making policies on offshore cage aquaculture insurance.
In empirical analyses, this research uses the approach which Pope, Chavas and Just published in 1983 to analyze the risk attitudes of the offshore cage aquaculture producers, under the assumptions of maximizing producers’ utility, what’s more, we try to discuss the impacts of implementing insurance on the cobia cage aquaculture producers’ production decisions by Monte Carlo Integration approach. The conclusions of this research are sorted as follows:
1. Under 10% significance level, we fail to reject the null hypothesis that the risk attitudes of offshore cage aquaculture producers are constant absolute risk aversion producer. Therefore, we assumed that the risk attitudes of the offshore cobia cage aquaculture producers are constant absolute risk aversion producers.
2. Prior to bringing insurance into practice, the higher the degree of risk aversion of the cobia cage aquaculture producer is, the lower the optimal feed input used. With insurance, all cobia cage aquaculture producers will increase the feed input.
3. When the insurance level is higher than 70%, the optimal feed input used will decrease gradually, and the level of decrease increases as the insurance level rise.
4. Under the same insurance level, the higher the degree of the risk aversion of the producer is, the more impact the producer face.
5. If the cage aquaculture insurance is implemented by the government, on consideration of the government’s financial status and social income distribution, the revenue insurance should be adopted, and the insurance level can’t be set too high, insurance level should be under 70%.
Subjects
生產決策
風險態度
箱網養殖
保險制度
海鱺
Risk Attitude
Cobia
Production Decision
Insurance
Cage Aquaculture
SDGs
Type
thesis
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