Mapping weather index-based insurance in Mali using spatial data analysis
Year: 2012
Type: book
Abstract: Weather is a significant factor for economic well-being in many countries of sub-Saharan Africa depending on agriculture as major livelihood. Especially, in areas with predominantly rain fed agriculture, weather variability is a major determinant of economic growth (e.g. IBRD/WB, 2006). Under the threat of possible adverse weather conditions, poor farm households will often choose low-risk, low return activities, and avoid costly innovations that could increase productivity (e.g. Ruben et al., 2006). Financial institutions tend to restrict lending to farm households if adverse weather conditions might result in widespread defaults (Skees et al., 2006). The lack of access to credit restricts access to agricultural inputs required for increasing productivity and overall rural development. Hence, different risk coping strategies at different scales exist that may be effective in reducing risk exposure in the short run, but hinder growth and rural development in the long-run.
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2591101409