Pitfalls and potential of institutional change: rain-index insurance and the sustainability of rangeland management
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Pitfalls and potential of institutional change : rain-index insurance and the sustainability of rangeland management. / Müller, Birgit; Quaas, Martin; Frank, Karin et al.
In: Ecological Economics, Vol. 70, No. 11, 15.09.2011, p. 2137-2144.Research output: Journal contributions › Journal articles › Research › peer-review
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TY - JOUR
T1 - Pitfalls and potential of institutional change
T2 - rain-index insurance and the sustainability of rangeland management
AU - Müller, Birgit
AU - Quaas, Martin
AU - Frank, Karin
AU - Baumgärtner, Stefan
PY - 2011/9/15
Y1 - 2011/9/15
N2 - Rain-index insurance is strongly advocated in many parts of the developing world to help farmers to cope with climatic risk that prevails 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.
AB - Rain-index insurance is strongly advocated in many parts of the developing world to help farmers to cope with climatic risk that prevails 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.
KW - Sustainability sciences, Management & Economics
KW - ecological-economic modeling
KW - weather-index insurance
KW - Namibia
KW - grazing management
KW - risk
KW - sustainability
KW - weather-based derivatives
KW - Economics
KW - ecological-economic modeling
KW - weather-index insurance
KW - Namibia
KW - grazing management
KW - risk
KW - sustainability
KW - weather-based derivatives
UR - http://www.scopus.com/inward/record.url?scp=80052028274&partnerID=8YFLogxK
U2 - 10.1016/j.ecolecon.2011.06.011
DO - 10.1016/j.ecolecon.2011.06.011
M3 - Journal articles
VL - 70
SP - 2137
EP - 2144
JO - Ecological Economics
JF - Ecological Economics
SN - 0921-8009
IS - 11
ER -