What rainfall does not tell us—Enhancing financial instruments with satellite-derived soil moisture and evaporative stress

Advanced parametric financial instruments, like weather index insurance (WII) and risk contingency credit (RCC), support disaster-risk management and reduction in the world’s most disaster-prone regions. Simultaneously, satellite data that are capable of cross-checking rainfall estimates, the “stand...

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Main Authors: Enenkel, Markus, Farah, Carlos, Hain, Christopher, White, Andrew, Anderson, Martha, You, Liangzhi, Wagner, Wolfgang, Osgood, Daniel
Format: Journal Article
Language:Inglés
Published: MDPI 2018
Subjects:
Online Access:https://hdl.handle.net/10568/146096
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author Enenkel, Markus
Farah, Carlos
Hain, Christopher
White, Andrew
Anderson, Martha
You, Liangzhi
Wagner, Wolfgang
Osgood, Daniel
author_browse Anderson, Martha
Enenkel, Markus
Farah, Carlos
Hain, Christopher
Osgood, Daniel
Wagner, Wolfgang
White, Andrew
You, Liangzhi
author_facet Enenkel, Markus
Farah, Carlos
Hain, Christopher
White, Andrew
Anderson, Martha
You, Liangzhi
Wagner, Wolfgang
Osgood, Daniel
author_sort Enenkel, Markus
collection Repository of Agricultural Research Outputs (CGSpace)
description Advanced parametric financial instruments, like weather index insurance (WII) and risk contingency credit (RCC), support disaster-risk management and reduction in the world’s most disaster-prone regions. Simultaneously, satellite data that are capable of cross-checking rainfall estimates, the “standard dataset” to develop such financial safety nets, are gaining importance as complementary sources of information. This study concentrates on the analysis of satellite-derived multi-sensor soil moisture (ESA CCI, Version v04.2), the evapotranspiration-based Evaporative Stress Index (ESI), and CHIRPS (Climate Hazards Group InfraRed Precipitation with Station data) rainfall estimates in nine East African countries. Based on spatial correlation analysis, we found matching spatial/temporal patterns between all three datasets, with the highest correlation coefficient occurring between October and March. In large parts of Kenya, Ethiopia, and Somalia, we observed a lower (partly negative) correlation coefficient between June and August, which was likely caused by issues related to cloud cover and the volume scattering of microwaves in sandy, hot soils. Based on simple linear and logit regression analysis with annual, national maize yield estimates as the dependent variable, we found that, depending on the chosen period (averages per year, growing or harvesting months), there was added value (higher R-squared) if two or all three variables were combined. The ESI and soil moisture have the potential to close sensitive knowledge gaps between atmospheric moisture supply and the response of the land surface in operational parametric insurance projects. For the development and calibration of WII and RCC, this means that better proxies for historical and potential future drought impact can strengthen “drought narratives”, resulting in a better match between calculated payouts/credit repayment levels and the actual needs of smallholder farmers.
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spelling CGSpace1460962025-12-08T10:29:22Z What rainfall does not tell us—Enhancing financial instruments with satellite-derived soil moisture and evaporative stress Enenkel, Markus Farah, Carlos Hain, Christopher White, Andrew Anderson, Martha You, Liangzhi Wagner, Wolfgang Osgood, Daniel spatial data rain risk management remote sensing evapotranspiration weather index insurance risk prevention disaster risk management drought soil cracking soil water content risk credit Advanced parametric financial instruments, like weather index insurance (WII) and risk contingency credit (RCC), support disaster-risk management and reduction in the world’s most disaster-prone regions. Simultaneously, satellite data that are capable of cross-checking rainfall estimates, the “standard dataset” to develop such financial safety nets, are gaining importance as complementary sources of information. This study concentrates on the analysis of satellite-derived multi-sensor soil moisture (ESA CCI, Version v04.2), the evapotranspiration-based Evaporative Stress Index (ESI), and CHIRPS (Climate Hazards Group InfraRed Precipitation with Station data) rainfall estimates in nine East African countries. Based on spatial correlation analysis, we found matching spatial/temporal patterns between all three datasets, with the highest correlation coefficient occurring between October and March. In large parts of Kenya, Ethiopia, and Somalia, we observed a lower (partly negative) correlation coefficient between June and August, which was likely caused by issues related to cloud cover and the volume scattering of microwaves in sandy, hot soils. Based on simple linear and logit regression analysis with annual, national maize yield estimates as the dependent variable, we found that, depending on the chosen period (averages per year, growing or harvesting months), there was added value (higher R-squared) if two or all three variables were combined. The ESI and soil moisture have the potential to close sensitive knowledge gaps between atmospheric moisture supply and the response of the land surface in operational parametric insurance projects. For the development and calibration of WII and RCC, this means that better proxies for historical and potential future drought impact can strengthen “drought narratives”, resulting in a better match between calculated payouts/credit repayment levels and the actual needs of smallholder farmers. 2018-11-28 2024-06-21T09:05:49Z 2024-06-21T09:05:49Z Journal Article https://hdl.handle.net/10568/146096 en Open Access MDPI Enenkel, Markus; Farah, Carlos; Hain, Christopher; White, Andrew; Anderson, Martha; You, Liangzhi; Wagner, Wolfgang; and Osgood, Daniel. 2018. What rainfall does not tell us—Enhancing financial instruments with satellite-derived soil moisture and evaporative stress. Remote Sensing 10(11), 1819. https://doi.org/10.3390/rs10111819
spellingShingle spatial data
rain
risk management
remote sensing
evapotranspiration
weather index insurance
risk prevention
disaster risk management
drought
soil cracking
soil water content
risk
credit
Enenkel, Markus
Farah, Carlos
Hain, Christopher
White, Andrew
Anderson, Martha
You, Liangzhi
Wagner, Wolfgang
Osgood, Daniel
What rainfall does not tell us—Enhancing financial instruments with satellite-derived soil moisture and evaporative stress
title What rainfall does not tell us—Enhancing financial instruments with satellite-derived soil moisture and evaporative stress
title_full What rainfall does not tell us—Enhancing financial instruments with satellite-derived soil moisture and evaporative stress
title_fullStr What rainfall does not tell us—Enhancing financial instruments with satellite-derived soil moisture and evaporative stress
title_full_unstemmed What rainfall does not tell us—Enhancing financial instruments with satellite-derived soil moisture and evaporative stress
title_short What rainfall does not tell us—Enhancing financial instruments with satellite-derived soil moisture and evaporative stress
title_sort what rainfall does not tell us enhancing financial instruments with satellite derived soil moisture and evaporative stress
topic spatial data
rain
risk management
remote sensing
evapotranspiration
weather index insurance
risk prevention
disaster risk management
drought
soil cracking
soil water content
risk
credit
url https://hdl.handle.net/10568/146096
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