Demand for complementary financial and technological tools for managing drought risk
Financial and technological innovations that mitigate weather-related production risks have the potential to greatly benefit farmers in many risk-prone areas. In this study we examine farmers’ preferences for two distinct tools that allow them to manage drought risk: weather index insurance and a re...
| Autores principales: | , , |
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| Formato: | Conference Paper |
| Lenguaje: | Inglés |
| Publicado: |
2015
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/151316 |
| _version_ | 1855526612637843456 |
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| author | Ward, Patrick S. Spielman, David J. Ortega, David L. |
| author_browse | Ortega, David L. Spielman, David J. Ward, Patrick S. |
| author_facet | Ward, Patrick S. Spielman, David J. Ortega, David L. |
| author_sort | Ward, Patrick S. |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Financial and technological innovations that mitigate weather-related production risks have the potential to greatly benefit farmers in many risk-prone areas. In this study we examine farmers’ preferences for two distinct tools that allow them to manage drought risk: weather index insurance and a recently released drought-tolerant rice variety. We illustrate how these tools can independently address drought risk and demonstrate the additional benefits gained by combining them into a complementary risk management product. Findings indicate that farmers are generally unwilling to adopt the drought-tolerant variety independent of insurance, largely due to a yield penalty under non-drought conditions. When bundled with insurance, however, farmers’ valuation of the variety increases. Farmers value insurance on its own, but even more so when bundled with the drought-tolerant variety. The results provide evidence that farmers value the complementarities inherent in a well-calibrated bundle of risk management tools. |
| format | Conference Paper |
| id | CGSpace151316 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2015 |
| publishDateRange | 2015 |
| publishDateSort | 2015 |
| record_format | dspace |
| spelling | CGSpace1513162025-02-24T06:45:28Z Demand for complementary financial and technological tools for managing drought risk Ward, Patrick S. Spielman, David J. Ortega, David L. insurance seeds technology drought risk finance Financial and technological innovations that mitigate weather-related production risks have the potential to greatly benefit farmers in many risk-prone areas. In this study we examine farmers’ preferences for two distinct tools that allow them to manage drought risk: weather index insurance and a recently released drought-tolerant rice variety. We illustrate how these tools can independently address drought risk and demonstrate the additional benefits gained by combining them into a complementary risk management product. Findings indicate that farmers are generally unwilling to adopt the drought-tolerant variety independent of insurance, largely due to a yield penalty under non-drought conditions. When bundled with insurance, however, farmers’ valuation of the variety increases. Farmers value insurance on its own, but even more so when bundled with the drought-tolerant variety. The results provide evidence that farmers value the complementarities inherent in a well-calibrated bundle of risk management tools. 2015-08-14 2024-08-01T02:56:37Z 2024-08-01T02:56:37Z Conference Paper https://hdl.handle.net/10568/151316 en https://doi.org/10.1086/700632 https://hdl.handle.net/10568/151317 http://purl.umn.edu/204882 Open Access Ward, Patrick S.; Spielman, David J.; and Ortega, David L. 2015. Demand for complementary financial and technological tools for managing drought risk. Presented at the 29th Triennial International Conference of Agricultural Economists (ICAE), August 8 -14, 2015 in Milan, Italy. https://purl.umn.edu/211909 |
| spellingShingle | insurance seeds technology drought risk finance Ward, Patrick S. Spielman, David J. Ortega, David L. Demand for complementary financial and technological tools for managing drought risk |
| title | Demand for complementary financial and technological tools for managing drought risk |
| title_full | Demand for complementary financial and technological tools for managing drought risk |
| title_fullStr | Demand for complementary financial and technological tools for managing drought risk |
| title_full_unstemmed | Demand for complementary financial and technological tools for managing drought risk |
| title_short | Demand for complementary financial and technological tools for managing drought risk |
| title_sort | demand for complementary financial and technological tools for managing drought risk |
| topic | insurance seeds technology drought risk finance |
| url | https://hdl.handle.net/10568/151316 |
| work_keys_str_mv | AT wardpatricks demandforcomplementaryfinancialandtechnologicaltoolsformanagingdroughtrisk AT spielmandavidj demandforcomplementaryfinancialandtechnologicaltoolsformanagingdroughtrisk AT ortegadavidl demandforcomplementaryfinancialandtechnologicaltoolsformanagingdroughtrisk |