ORIGINAL RESEARCH article
Front. Environ. Sci.
Sec. Environmental Economics and Management
Volume 13 - 2025 | doi: 10.3389/fenvs.2025.1651603
Determinants of Crop Insurance Demand in Türkiye: A PLS-SEM Analysis Integrating Economic and Ecological Factors
Provisionally accepted
- Kirikkale Universitesi, Kirikkale, Türkiye
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Agricultural production faces growing risks due to climate change, environmental degradation, and economic instability, making effective insurance mechanisms essential. This study examines the factors influencing agricultural insurance demand Türkiye (2006Türkiye ( -2023) ) through Partial Least Squares Structural Equation Modeling (PLS-SEM), analyzing three latent constructs: agriculture economy (agricultural GDP, agricultural area, insured area), insurance economy (government subsidized premium, total premiums, insured values), and Ecological-Meteorological Risks (Load Capacity Factor (LCF), meteorological disasters count). Findings show that the agricultural economy is the strongest predictor of insurance demand, followed by the insurance economy and ecologicalmeteorological risks. Notably, the study integrates the load capacity factor as an ecological sustainability measure, showing that insurance demand increases as environmental carrying limits are approached. As a new methodological contribution, the research also explores how risk scores derived from structural modeling can inform future index-based premium calculations. These results suggest policy actions such as risk zoning based on ecological metrics, premium subsidies tailored to local vulnerabilities, and the development of adaptive insurance schemes. This study highlights how combining ecological data with structural modeling offers a forward-looking and resilient approach to agricultural risk management.
Keywords: Agricultural insurance, crop insurance demand, Climate risk, PLS-SEM, ecological sustainability, Load capacity factor, Meteorological disasters, Actuarial models
Received: 22 Jun 2025; Accepted: 30 Jul 2025.
Copyright: © 2025 Yörübulut. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
* Correspondence: Serap Yörübulut, Kirikkale Universitesi, Kirikkale, Türkiye
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