Analysis of economic incentives for managing risk at the farm level in the context of climate change
Weather indexed crop insurance has the potential of offering risk management to high-risk populations in poor areas, by lowering transaction costs of managing contracts and payouts, thereby offering affordable insurance even to poor farmers. Lower transaction costs relative to multiperil yield-based...
| Main Authors: | , , , |
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| Format: | Book Chapter |
| Language: | Inglés |
| Published: |
Macmillan
2012
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| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/34912 |
| Summary: | Weather indexed crop insurance has the potential of offering risk management to high-risk populations in poor areas, by lowering transaction costs of managing contracts and payouts, thereby offering affordable insurance even to poor farmers. Lower transaction costs relative to multiperil yield-based insurance, can be achieved through use of local weather data, rather than on-farm crop cutting experiments, that lowers verification costs, while maintaining, or even lowering basic risk. |
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