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Author Müller, Birgit ♦ Quaas, Martin ♦ Frank, Karin ♦ Baumgärtner, Stefan
Source EconStor
Content type Text
Publisher Verein für Socialpolitik
File Format PDF
Language English
Subject Domain (in DDC) Social sciences ♦ Economics
Subject Keyword ecological-economic modeling ♦ weather-index insurance ♦ Namibia ♦ risk ♦ weather-based derivatives ♦ Africa ♦ Criteria for Decision-Making under Risk and Uncertainty ♦ Insurance; Insurance Companies; Actuarial Studies ♦ Ecological Economics: Ecosystem Services; Biodiversity Conservation; Bioeconomics; Industrial Ecology
Abstract Rain-index insurance is strongly advocated in many parts of the developing world to help farmers to cope with climatic risk that prevail in (semi-)arid rangelands due to low and highly uncertain rainfall. We present a modeling analysis of how the availability of rain-index insurance affects the sustainability of rangeland management. We show that a rain-index insurance with frequent payoffs, i.e. a high strike level, leads to the choice of less sustainable grazing management than without insurance available. However, rain-index insurance with a low to medium strike level enhances the farmer's well-being while not impairing the sustainability of rangeland management.
Part of series Beiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Empirical Studies in Development Economics xD14-V3
Learning Resource Type Article
Publisher Date 2010-01-01
Publisher Place Frankfurt a. M.
Rights Holder