|Title (Primary)||Pitfalls and potential of institutional change: rain-index insurance and the sustainability of rangeland management|
|Author||Müller, B.; Quaas, M.F.; Frank, K.; Baumgärtner, S.|
|Keywords||Ecological–economic modeling; Weather-index insurance; Namibia; Risk; Grazing management; Africa|
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.
|Persistent UFZ Identifier||https://www.ufz.de/index.php?en=20939&ufzPublicationIdentifier=11314|
|Müller, B., Quaas, M.F., Frank, K., Baumgärtner, S. (2011):
Pitfalls and potential of institutional change: rain-index insurance and the sustainability of rangeland management
Ecol. Econ. 70 (11), 2137 - 2144