Improving index-based drought insurance in varying topography: evaluating basis risk based on perceptions of Nicaraguan hillside farmers

cg.contributor.crpClimate Change, Agriculture and Food Securityen_US
cg.coverage.countryNicaraguaen_US
cg.coverage.iso3166-alpha2NIen_US
cg.coverage.regionLatin Americaen_US
cg.coverage.regionSouth Americaen_US
cg.coverage.regionCentral Americaen_US
cg.creator.identifierPeter Läderach: 0000-0001-8708-6318en_US
cg.howPublishedFormally Publisheden_US
cg.identifier.doihttps://doi.org/10.1371/journal.pone.0051412en_US
cg.isijournalISI Journalen_US
cg.issn1932-6203en_US
cg.issue12en_US
cg.journalPLOS ONEen_US
cg.subject.ccafsCLIMATE SERVICES AND SAFETY NETSen_US
cg.volume7en_US
dc.contributor.authorKost, Andréen_US
dc.contributor.authorLäderach, Peter R.D.en_US
dc.contributor.authorMyles, Fisheren_US
dc.contributor.authorCook, Simon E.en_US
dc.contributor.authorGómez, Lorenaen_US
dc.date.accessioned2014-08-15T12:13:14Zen_US
dc.date.available2014-08-15T12:13:14Zen_US
dc.identifier.urihttps://hdl.handle.net/10568/41975en_US
dc.titleImproving index-based drought insurance in varying topography: evaluating basis risk based on perceptions of Nicaraguan hillside farmersen_US
dcterms.abstractThis paper discusses a methodology to model precipitation indices and premium prices for index-based drought insurance for smallholders. Spatial basis risk, which is borne by the insured, is a problem, especially in variable topography. Also, site-specific drought risk needs to be estimated accurately in order to offer effective insurance cover and ensure financial sustainability of the insurance scheme. We explore farmers' perceptions on drought and spatial climate variability and draw conclusions concerning basis risk with regards to the proposed methodology. There are technically many options to represent natural heterogeneity in index insurance contracts while serving the customer adequately and keeping transaction costs low.en_US
dcterms.accessRightsOpen Accessen_US
dcterms.available2012-12-11en_US
dcterms.bibliographicCitationKost A, Läderach P, Myles F, Cook SE, Gómez L. 2012. Improving index-based drought insurance in varying topography: evaluating basis risk based on perceptions of Nicaraguan hillside farmers. PLOS ONE 7(12):e51412.en_US
dcterms.issued2012-12-11en_US
dcterms.languageenen_US
dcterms.licenseCC-BY-4.0en_US
dcterms.publisherPublic Library of Scienceen_US
dcterms.subjectagricultureen_US
dcterms.subjectclimateen_US
dcterms.subjectdroughten_US
dcterms.subjectinsuranceen_US
dcterms.subjectsmallholdersen_US
dcterms.typeJournal Articleen_US

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