Pitfalls and potential of institutional change: rain-index insurance and the sustainability of rangeland management

Birgit Müller; Martin Quaas; Karin Frank; Stefan Baumgärtner

Pitfalls and potential of institutional change: rain-index insurance and the sustainability of rangeland management

Birgit Müller
, Martin Quaas
, Karin Frank
, Stefan Baumgärtner

Research output: Working paper › Working papers

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 a_ects the sustainability of rangeland management. We show that a rain-index insurance with frequent payo_s, i.e. a high strike level, leads to the choice of less sustainable grazing management than without insurance available. However, a rain-index insurance with a low to medium strike level enhances the farmer's well-being while not impairing the sustainability of rangeland management.

Original language	English
Place of Publication	Lüneburg
Publisher	Institut für Volkswirtschaftslehre der Universität Lüneburg
Number of pages	22
Publication status	Published - 2009

Bibliographical note

Literaturverz. S. 17 - 21. - Parallel als Online-Ausg. erschienen unter der Adresse http://www.leuphana.de/fileadmin/user_upload/Forschungseinrichtungen/ifvwl/WorkingPapers/wp_149_Upload.pdf : October 2009

Research areas and keywords

Sustainability sciences, Management & Economics
ecological-economic modelling
weather-index insurance
Namibia
grazing management
risk
sustainability
weather-based derivatives
Economics

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Nachhaltige Nutzung von Ökosystemdienstleistungen unter Unsicherheit. Ökologisch-ökonomische Modellierung und Evaluierung volkswirtschaftlicher Politikoptionen
Baumgärtner, S. (Project manager, academic), Quaas, M. F. (Project manager, academic), Olbrich, R. (Project staff), Derissen, S. (Project staff), Jakoby, O. (Project staff) & Groth, M. (Project staff)
Federal Ministry of Education and Research
01.02.07 → 31.07.10
Project: Research

Cite this

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KW - weather-based derivatives

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KW - sustainability

KW - weather-based derivatives

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Pitfalls and potential of institutional change: rain-index insurance and the sustainability of rangeland management

Abstract

Bibliographical note

Research areas and keywords

Access to Document

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Projects

Nachhaltige Nutzung von Ökosystemdienstleistungen unter Unsicherheit. Ökologisch-ökonomische Modellierung und Evaluierung volkswirtschaftlicher Politikoptionen

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