Weather Derivatives and Water Management in Developing Countries: An Application for an Irrigation District in Central Mexico

Autor:	Miriam Juárez-Torres, Leonardo Sánchez-Arag—n, Dmitry Vedenov
Jazyk:	angličtina
Rok vydání:	2017
Předmět:	crop insurance irrigation districts optimal irrigation policy water management weather derivatives Agriculture
Zdroj:	Journal of Agricultural and Resource Economics, Vol 42, Iss 2, Pp 146-163 (2017)
Druh dokumentu:	article
ISSN:	1068-5502 2327-8285
DOI:	10.22004/ag.econ.257995
Popis:	This paper analyzes possible improvements to water allocation from introducing weather derivatives as an insurance instrument in irrigation districts with no water markets and two cropping seasons. Dry-season production depends completely on irrigation, while wet-season production depends on irrigation as a supplement to naturally occurring precipitation. Using an analytical model of water allocation and historical data from an irrigation district in Central Mexico, simulations show that weather derivatives could encourage interseasonal reallocation of water from wet to dry season, generating new Pareto-optimal water allocations that improve overall welfare among producers.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/17015ca749e44af89a0f840a6649c352 Zobrazit plný text záznamu View record in DOAJ