Are farmers willing to pay for participatory climate information services? Insights from a case study in peri-urban Khulna, Bangladesh

Spyridon Paparrizos,Uthpal Kumar,T.S Amjath-Babu,Fulco Ludwig

doi:10.1016/j.cliser.2021.100241

Abstract

Among technological adaptation options, climate information services (CIS) offers high potential as a means to offset climate change impacts and build resilience in farming areas of developing countries. This study explores the potential of CIS, by investigating the case of participatory CIS development in the Lower Ganges Delta of Bangladesh. Specifically, we examined the value farmers attached to a co-developed CIS as decision support tool and the price farmers were willing to pay for CIS subscriptions. Based on a hypothetical market for CIS, we used contingent valuation with a double-bounded dichotomous choice format to determine farmers willingness to pay (WTP) for CIS. Two samples were included: an experiment group of farmers exposed to and trained in CIS use for farm decision-making and a control group of farmers without prior exposure to CIS. More than 90% of farmers in the experiment group expressed willingness to pay for CIS, compared to 75% of the control group. The annual subscription fees farmers were willing to pay ranged from 970.92 taka (US $11.45) to 1387.20 taka ($16.36). WTP was greater among farmers who had participated in CIS co-development. The main factors influencing farmers’ willingness to pay were CIS cost and prior exposure and training to CIS. Given that Bangladesh has more than 16.5 million farm households, these findings suggest huge market potential for CIS. Based on the high potential of participatory CIS, governmental institutions, the private sector and social entrepreneurs are called upon to develop CIS for smallholders, to unlock smallholders’ agriculture potential.

Highlights

Climate is a key driver of coupled ecological and economic systems, the food production system (IPCC, 2014; Steiner et al, 2018)
Applying doublebounded contingent valuation analysis, we found that more than 90% of the farmers who had received prior training and taken part in the co-development process expressed a willingness to pay for tailor-made climate information services (CIS), compared to some 75% for the control group
In rolling out CIS to farmers in the study area and more widely, government agencies in Bangladesh may have a contributing role to play. They might invest in climate and weather information services to make them more affordable for farmers or provide subsidies for CIS for the agri cultural sector, if low willingness to pay for CIS becomes an obstacle to their widespread provision and use

Summary

Introduction

Climate is a key driver of coupled ecological and economic systems, the food production system (IPCC, 2014; Steiner et al, 2018). Climate change impacts both household income and livelihood sustain ability (Amjath-Babu et al, 2016). It reduces farm earnings directly, through diminished crop productivity (linked to unfavourable weather conditions) and more frequent crop failures (caused by extreme weather events). Climate change reduces farm earnings by increasing production costs and seasonal unemployment (Alam et al, 2011; Banna et al, 2016; Masud et al, 2017; Siwar et al, 2009). For smallholders to achieve an adequate and sustainable livelihood, technological and ecosystem-level adaptations are needed to offset climate change im pacts. Climate information services (CIS) is an emerging possibility

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