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

Activity: Talk or presentationConference PresentationsResearch

Stefan Baumgärtner - Speaker

    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.
    29.06.201102.07.2011

    Event

    18th Annual Conference of the European Association of Environmental and Resource Economists - EAERE 2011

    29.06.1102.07.11

    Rom, Italy

    Event: Conference