The insurance industry has so far relied on historical data to develop and price weather insurance contracts. In light of climate change, we examine the effects of this practice in terms of the hedging effectiveness and profitability of insurance contracts. We use simulated crop and weather data...

Mechanistic crop growth models are becoming increasingly important in agricultural research and are extensively used in climate change impact assessments. In such studies, statistics of crop yields are usually evaluated without the explicit consideration of sample size requirements. The purpose...