This paper presents a theoretical model to investigate the potential environmental consequences of weather index based insurance, a tool for mitigating weather risk that is gaining momentum in developing countries. We model potential effects of index insurance for pastoralists on animal stocking...

Weather insurance is a financial instrument proposed to increase coverage of unprotected weather shocks in developing countries. Structuring sales as group-based products has been argued as a strategy to increase the attractiveness of index insurance, raising the question as to what impacts...