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Climate change heightens the risk of climate anomalies. We find projected climate anomalies have a significantly negative impact on agricultural financing. When the projected probability of an abnormally high temperature (low temperature, low precipitation) for a month is in the top decile,...
Persistent link: https://www.econbiz.de/10013404272
The weather index-based insurances may help farmers to cope with climate risks overcoming the most common issues of traditional insurances. However, the weather index-based insurances present the limit of the basis risk: a significant yield loss may occur although the weather index does not...
Persistent link: https://www.econbiz.de/10013349388
Recently the topic of global warming has become very popular. The literature has concentrated its attention on the evidence of such effect, either by detecting regime shifts or change points in time series. The majority of these methods are designed to find shifts in mean, but only few can do...
Persistent link: https://www.econbiz.de/10009526622
The June 2017 issue of Science magazine laid out an extensive and comprehensive model for projecting the future cost of climate change for the United States of America. What the paper does not do, and which is the objective herein is to ask, what has climate change cost us so far? The paper...
Persistent link: https://www.econbiz.de/10012910078
Weather derivatives (WD) are different from most financial derivatives because the underlying weather cannot be traded and therefore cannot be replicated by other financial instruments. The market price of risk (MPR) is an important parameter of the associated equivalent martingale measures used...
Persistent link: https://www.econbiz.de/10012966297
Recently the topic of global warming has become very popular. The literature has concentrated its attention on the evidence of such effect, either by detecting regime shifts or change points in time series. The majority of these methods are designed to find shifts in mean, but only few can do...
Persistent link: https://www.econbiz.de/10010318774
Inter-annual climate variability in the Southeastern US that affects farm productivity and cash flows is largely driven by the predictable El Nino Southern Oscillation (ENSO) phenomenon. In this paper, we evaluate the impact of the ENSO anomalies on the performance of agricultural loan...
Persistent link: https://www.econbiz.de/10012941813
emissions. This has led the media, policy makers and the public to overlook industrial agriculture, one of the principal … contributors to global greenhouse emissions. Industrial agriculture – particularly industrial livestock activity – emits … oxide (N2O) and methane (CH4). In fact, greenhouse gas emissions from agriculture far exceed those from transportation. Yet …
Persistent link: https://www.econbiz.de/10014193208
Using a rare flood in April 2019 in Iran as a natural experiment, we study the role of local banks in mitigating the financial consequence of natural disasters to smallholder farmers. We find that local branches immediately react to the disaster by increasing their lending for two months...
Persistent link: https://www.econbiz.de/10013405553
Even though agricultural activities have always had to face systemic risk, increasing uncertainty linked to market conditions, policy revision and climate change require the adoption of extensive, functional and informed risk management strategies. Our study aims to investigate north-eastern...
Persistent link: https://www.econbiz.de/10013352602