Improving humanitarian response to slow-onset disasters using famine-indexed weather derivatives
AbstractThis paper illustrates how weather derivatives indexed to forecasts of famine can be designed and used by operational agencies and donors to facilitate timely and reliable financing, for effective emergency response to climate-based, slow-onset disasters such as drought. We provide a general framework for derivative contracts, especially in the context of index insurance and famine catastrophe bond, and show how they can be used to complement existing tools and facilities in drought risk financing through a risk-layering strategy. We use the case of arid lands of northern Kenya, where rainfall proves a strong predictor of widespread and severe child wasting, to provide a simple empirical illustration of the potential contract designs.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Emerald Group Publishing in its journal Agricultural Finance Review.
Volume (Year): 68 (2008)
Issue (Month): 1 (September)
Contact details of provider:
Web page: http://www.emeraldinsight.com
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Antoine Leblois & Philippe Quirion, 2011. "Weather-index drought insurance : an ex ante evaluation for millet growers in Niger," Working Papers hal-00866438, HAL.
- Rong Kong & Calum G. Turvey & Guangwen He & Jiujie Ma & Patrick Meagher, 2011. "Factors influencing Shaanxi and Gansu farmers' willingness to purchase weather insurance," China Agricultural Economic Review, Emerald Group Publishing, vol. 3(4), pages 423-440, November.
- Leblois, Antoine & Quirion, Philippe & Alhassane, Agali & Traore, Seydou, 2011. "Weather index drought insurance: an ex ante evaluation for millet growers in Niger," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 120378, European Association of Agricultural Economists.
- Clarke, Daniel J. & Hill, Ruth Vargas, 2013. "Cost-benefit analysis of the african risk capacity facility:," IFPRI discussion papers 1292, International Food Policy Research Institute (IFPRI).
- Muamba, Francis M. & Ulimwengu, John M., 2010. "Optimal rainfall insurance contracts for maize producers in Ghana’s Northern Region," IFPRI discussion papers 1016, International Food Policy Research Institute (IFPRI).
- Lybbert, Travis J. & Sumner, Daniel A., 2012. "Agricultural technologies for climate change in developing countries: Policy options for innovation and technology diffusion," Food Policy, Elsevier, vol. 37(1), pages 114-123.
- Antoine Leblois & Philippe Quirion, 2011. "Weather-index drought insurance : an ex ante evaluation for millet growers in Niger," CIRED Working Papers hal-00866438, HAL.
- Sommarat CHANTARAT & Kirk PANNANGPETCH & Nattapong PUTTANAPONG & Thanasin TANOMPONGHANDH, 2013. "Index-Based Risk Financing and Development of Natural Disaster Insurance Programs in Developing Asian Countries," Working Papers DP-2013-09, Economic Research Institute for ASEAN and East Asia (ERIA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Harris).
If references are entirely missing, you can add them using this form.