Management of hail risk: insurance or anti-hail nets?
AbstractAlpine fruit farms usually ensure their production against hail risk; more rarely prevent the damage by using anti-hail nets. To explain the choice between the two alternatives for defence of fruit production against the hail risk, insurance and anti hail-nets, was developed a model that simulates the effects of variations of each component of cost and of the public aid. The quality of the model was then tested on three alpine areas representing different levels of hail risk. The test allows to answer in particular to the following questions. a) Without public aid which would be the best choice of defence against hail risk? b) How the public aid influence the choice of defence against hail risk? c) The results of the test are confirmed by the choices of alpine fruit farms? d) How can we improve the public policy against the hail risk?
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Bibliographic InfoPaper provided by Department of Economics, University of Trento, Italia in its series Department of Economics Working Papers with number 0910.
Date of creation: 2009
Date of revision:
Fruit farms. Hail risk. Choice of defence. Break even point. Public aid.;
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