Smallholder farmers in developing countries are particularly vulnerable to climate shocks but often lack access to insurance. Weather index insurance (WII) is a promising innovation, but uptake has been lower than expected. WII contracts are not yet sufficiently tailored to the needs and...

Farmers' perceptions of climate risk reflect their subjective probability weighting bias, which are the prerequisite for their adaptation decisions and thus shape their actions. As an adaptation strategy, farmers prioritized the technological measures of chemical input as the most simple and...

Using a unique dataset collected among farmers in India’s semi-arid tropics, this paper documents the surprising prevalence of risk-taking behavior in the face of high-stakes gambles. The evidence suggests that this apparently anomalous behavior is due to a combination of credit constraints...

Factors such as risk attitude, innovativeness, and financial literacy are crucial in agricultural and forest economics, especially amidst weather and market risks. Hence, understanding them is central for fostering a resilient primary sector. We surveyed 371 German farmers and 215 foresters in...