Pitfalls and Potential of Institutional Change : Rain-Index Insurance and the Sustainability of Rangeland Management

Rain-index insurance is strongly advocated in many parts of the developing world to help farmers coping 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, a rain-index insurance with a low to medium strike level enhances the farmer's well-being while not impairing the sustainability of rangeland management

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Year of publication:	2011
Authors:	Müller, Birgit ; Quaas, Martin F. ; Frank, Karin ; Baumgärtner, Stefan
Publisher:	[S.l.] : SSRN
Subject:	Weidewirtschaft \| Pastoral farming \| Nachhaltige Entwicklung \| Sustainable development \| Namibia \| Trockengebiet \| Arid zone \| Agrarversicherung \| Agricultural insurance \| Wetter \| Weather \| Rinderhaltung \| Cattle farming \| Ökologischer Landbau \| Organic farming