Comparison of different water supply risk management tools for irrigators: option contracts and insurance

Simple item page
dc.contributor.authorRey, Dolores
dc.contributor.authorGarrido, Alberto
dc.contributor.authorCalatrava, Javier
dc.date.accessioned2019-10-30T16:10:26Z
dc.date.available2019-10-30T16:10:26Z
dc.date.issued2015-04-11
dc.description.abstractIrrigators must cope with the risk of not having enough water to meet crop demands. There are different tools for managing this risk, including water market mechanisms and insurance. Given the choice, farmers will opt for the tool that offers the greatest positive change in expected utility. This paper presents a theoretical assessment of farmers’ expected utility for two different water option contracts and a drought insurance policy. We analyze the conditions that determine farmers’ preferences for these instruments and perform a numerical application to a water-stressed Spanish region. Results show that farmers’ willingness to pay for the considered risk management tools are greater than the preliminary estimates of these instruments costs. This suggests that option contracts and insurance may help farmers manage water supply availability risks.en_UK
dc.identifier.citationRey D, Garrido A, Calatrava J. Comparison of different water supply risk management tools for irrigators: option contracts and insurance. Environmental and Resource Economics, October 2016, Volume 65, Issue 2, pp. 415–439en_UK
dc.identifier.cris5857405
dc.identifier.issn0924-6460
dc.identifier.urihttps://doi.org/10.1007/s10640-015-9912-2
dc.identifier.urihttp://dspace.lib.cranfield.ac.uk/handle/1826/14656
dc.language.isoenen_UK
dc.publisherSpringeren_UK
dc.rightsAttribution-NonCommercial 4.0 International*
dc.rights.urihttp://creativecommons.org/licenses/by-nc/4.0/*
dc.subjectDrought insuranceen_UK
dc.subjectExpected utilityen_UK
dc.subjectWater supply option contracten_UK
dc.subjectUncertaintyen_UK
dc.subjectSpainen_UK
dc.subjectWater marketsen_UK
dc.titleComparison of different water supply risk management tools for irrigators: option contracts and insuranceen_UK
dc.typeArticleen_UK

Files

Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
water_supply_risk_management_tools_for_irrigators-2015.pdf
Size:
1.9 MB
Format:
Adobe Portable Document Format
Description:
Download
License bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
license.txt
Size:
1.63 KB
Format:
Item-specific license agreed upon to submission
Description:
Download

Collections

Staff publications (SWEE)