Effect of Agricultural Cooperative Membership on Willingness to Pay for Non-fatal Risk Reduction from COVID-19

Abstract

The recurring nature of the COVID-19 pandemic and the recent discovery of the Omicron variant in Nigeria, coupled with concerns about the specific roles and contributions of social institutions in redressing the spread of the virus, prompted this study. Thus, the study determined the willingness to pay for health risk reduction from Corona Virus (COVID-19); estimated the value of statistical case (VSC) and ascertained the effects of cooperative membership on the willingness to pay (WTP) for COVID-19 morbidity health risk reduction. Multi-stage sampling technique was deployed in selecting 149 cooperative and 130 non-cooperative members for the study, in Edu and Patigi Local Government Areas of Kwara State, Nigeria. To reach its conclusion, descriptive statistics, Levene’s test, t-test, chi-square, Probit analysis, propensity score matching, WTP and the value of statistical case were employed for data analysis. The study revealed that the typical cooperative member is willing to pay N1,638 per farming season to decrease his or her chance of falling sick from COVID-19 or averting non-fatal cases of COVID-19 by 1 in 10,000. In addition, the propensity score matching (PSM) estimation indicated that agricultural cooperative societies had effect on members, with the average member willing to pay N561.32 per season higher than the non-members. Arising from these results, it becomes imperative to consider integrating cooperative societies as complementary instrument for the prevention and control of COVID-19 pandemic. The estimated VSC further provides pecuniary basis and policy guidance for efficient allocation of resources for the mitigation and control of COVID-19