Extreme weather and demand for index insurance in rural India
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Extreme weather and demand for index insurance in rural India. / Bjerge, Benedikte; Trifkovic, Neda.
I: European Review of Agricultural Economics, Bind 45, Nr. 3, 15.03.2018, s. 397-431.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Extreme weather and demand for index insurance in rural India
AU - Bjerge, Benedikte
AU - Trifkovic, Neda
PY - 2018/3/15
Y1 - 2018/3/15
N2 - Index insurance appeared recently in developing countries with the expectation to improve agricultural output and living standards in general. We investigate how experiencing extreme weather events affects farmers’ decision to purchase index insurance in India. Extreme weather events are identified from historical precipitation data and matched with a randomised household panel. Excessive rainfall in previous years during the harvest increases the insurance demand, while lack of rainfall in the planting and growing periods has no effect. The latter can be explained by access to irrigation, underscoring the importance of the local context when developing insurance products to accommodate environmental risks.
AB - Index insurance appeared recently in developing countries with the expectation to improve agricultural output and living standards in general. We investigate how experiencing extreme weather events affects farmers’ decision to purchase index insurance in India. Extreme weather events are identified from historical precipitation data and matched with a randomised household panel. Excessive rainfall in previous years during the harvest increases the insurance demand, while lack of rainfall in the planting and growing periods has no effect. The latter can be explained by access to irrigation, underscoring the importance of the local context when developing insurance products to accommodate environmental risks.
KW - extreme weather
KW - index insurance
KW - agricultural risk
KW - India
U2 - 10.1093/erae/jbx037
DO - 10.1093/erae/jbx037
M3 - Journal article
VL - 45
SP - 397
EP - 431
JO - European Review of Agricultural Economics
JF - European Review of Agricultural Economics
SN - 0165-1587
IS - 3
ER -
ID: 203776020