Analysis of economic incentives for managing risk at the farm level in the context of climate change
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Barton DN, Kakumanu KR, Palanisami K, Tirupathaiah K. 2012. Analysis of economic incentives for managing risk at the farm level in the context of climate change. In: Nagothu US, Gosain AK, Palanisami K, eds. Water and climate change: an integrated approach to address adaptation challenges. New Delhi, India: Macmillan. p 143-168.
Permanent link to this item: http://hdl.handle.net/10568/34912
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.