This paper presents a theoretical model to investigate the potential environmental consequences of weather index based … insurance, a tool for mitigating weather risk that is gaining momentum in developing countries. We model potential effects of …

Systemic weather risk is a major obstacle for the formation of private (non- subsidized) crop insurance. This paper … explores the possibility of spatial diversification of insurance by estimating the joint occurrence of unfavorable weather … dependencies between multivariate random variables. The estimation procedure is applied to weather data in Germany. Our results …