Temperature effects on crop yields in heat index insurance

The effectiveness of weather index insurance in managing mariculture production risk

“…Finally, we need to determine the two most important parameters: the index strike and limit. The literature provides different parameter optimisation methods, such as judgement based on agronomic knowledge (Ye et al, 2017), quantile regression (Bucheli et al, 2021, 2022; Dalhaus & Finger, 2016; Vroege et al, 2021), minimising downside loss (Vedenov & Barnett, 2004) and maximising the welfare of farmers (Deng et al, 2007; Leblois et al, 2014; Mahul, 2001). This paper optimises insurance parameters by maximising the utility of mariculturists, as this can test the maximum potential of weather index mariculture insurance to improve welfare.…”

“…Secondly, previous studies have mainly analysed the effectiveness of weather index insurance from the perspective of farmers' welfare (Bucheli et al, 2021(Bucheli et al, , 2022Conradt et al, 2015;Leblois et al, 2014). However, this could neglect the advantage of the low subsidy cost of weather index insurance.…”

Heat risks in Swiss milk production

“…Both the THI and temperature can show considerable fluctuations within a day, but weather data is often only available at a daily resolution and does therefore not capture these fluctuations to the full. We follow previous research and approximate within‐day THI‐values (e.g., Finger et al, 2018; St‐Pierre et al, 2003; Vroege, 2020) and within‐day temperatures (e.g., Bucheli et al, 2022; D'Agostino & Schlenker, 2016; Gammans et al, 2017; Ortiz‐Bobea et al, 2018; Snyder, 1985; Tack et al, 2015) by using daily weather variables to fit daily sine curves. Subsequently, we derive hourly THI‐values and temperatures from the fitted daily sine curves.…”

“…We follow previous literature (e.g., Bucheli et al, 2022; Schlenker & Roberts, 2009) and set the knots, that is, the breaking points that divide the independent variable (i.e., the thermal variable) into intervals, so that the estimated Equation () has the largest goodness of fit. See Supporting Information: Section for details on how to derive the model with largest goodness of fit.…”

Farm‐level evaluation of area‐ and agroclimatic‐based index insurance

“…In 2021, the USDA's Risk Management Agency initiated research into a specialty crop weather index insurance plan. Globally, index‐based insurance products, like area‐yield and phase‐specific weather‐index for Chinese rice farmers (Shen & Odening, 2013; Shi & Jiang, 2016), and drought or heat index insurance in Germany (Bucheli et al, 2021; Bucheli et al, 2022), have been developed.…”