Risk preferences and poverty traps in the uptake of credit and insurance amongst small-scale farmers in South Africa

Submitted by Tali Hoffman on
EfD Authors:

We use a series of framed experimental games to test the role of access to credit and insurance on farm technology uptake with small-scale farmers in South Africa. Using Cumulative Prospect Theory ‘CPT’, we assess how insurance impacts technology uptake given risk preferences. Our findings suggest that risk aversion is linked to lower uptake of the uninsured and insured technology, while loss averse farmers are more likely to adopt technology bundled with insurance.

Experiments

Results from a water-saving maintenance campaign at Cape Town schools in the run-up to Day Zero

Submitted by Tali Hoffman on

Many South African schools struggle to maintain their water systems, particularly in the water-constrained Western Cape province, where the so-called “Day Zero” drought had intensified the urgency of saving water and increased the cost of supply. The problem is compounded by insufficient governmental funding, the lack of well-structured government policies, and a shortage of skilled maintenance staff at the schools. We evaluate the impact of a plumbing maintenance drive at 196 schools at the apex of the drought.

Experiments

Contrasting effects of information sharing on common-pool resource extraction behavior: Experimental findings

Submitted by Luat Do on
EfD Authors:

This paper experimentally investigates the impact of different information sharing mechanisms in a common-pool resource game, with a view to finding a mechanism that is both efficient and inexpensive for the managing agency. More precisely, we compare the observed extraction levels produced as a result of three mechanisms: a mandatory information sharing mechanism and two voluntary information sharing mechanisms that differ in the degree of freedom given to the players.

Conservation, Experiments