Weather index-based insurance as a meteorological risk management alternative in viticulture

This article explores the hedging potential of two weather index-based insurance programmes designed for the Rias Baixas Protected Designation of Origin (Spain). The first alternative insures both extreme and non-extreme weather events, while the second instrument covers exclusively extreme meteorol...

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Autor: Martínez-Salgueiro, Andrea|||0000-0001-5973-4971
Tipo de recurso: artículo
Fecha de publicación:2019
País:España
Institución:Universitat Autònoma de Barcelona
Repositorio:Dipòsit Digital de Documents de la UAB
Idioma:inglés
OAI Identifier:oai:ddd.uab.cat:222728
Acceso en línea:https://ddd.uab.cat/record/222728
https://dx.doi.org/urn:doi:10.1016/j.wep.2019.07.002
Access Level:acceso abierto
Palabra clave:Weather index-based Insurance
Viticulture
Meteorological risk
Hedging effectiveness
Copula approach
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spelling Weather index-based insurance as a meteorological risk management alternative in viticultureMartínez-Salgueiro, Andrea|||0000-0001-5973-4971Weather index-based InsuranceViticultureMeteorological riskHedging effectivenessCopula approachThis article explores the hedging potential of two weather index-based insurance programmes designed for the Rias Baixas Protected Designation of Origin (Spain). The first alternative insures both extreme and non-extreme weather events, while the second instrument covers exclusively extreme meteorological states. Two bioclimatic indicators computed for the period most correlated to grape yields are proposed as underlyings: the Branas, Bernon and Levadoux (BBL) and the Ribéreau-Gayon and Peynaud hydrothermal scale (RGP). Yield-weather dependence is then modelled with two different methodological approaches: copulas and linear regression. To asses the risk reducing potential, a hedging effectiveness analysis based on real and simulated data is carried out. The model uses variance and expected shortfall as risk measures. The results attained point out the high hedging ability of both insurance programmes, especially of the first of them based on RGP. This appraisal also reveals that the copula technique outperforms linear regression. Overall, the study results suggest that the implementation of policies geared to bioclimatic indices able to signal adverse weather events can significantly mitigate weather-related yield variations in viticulture. 22019-01-0120192019-01-01Articlehttp://purl.org/coar/resource_type/c_6501VoRhttp://purl.org/coar/version/c_970fb48d4fbd8a85info:eu-repo/semantics/articleapplication/pdfhttps://ddd.uab.cat/record/222728https://dx.doi.org/urn:doi:10.1016/j.wep.2019.07.002reponame:Dipòsit Digital de Documents de la UABinstname:Universitat Autònoma de BarcelonaInglésengopen accesshttp://purl.org/coar/access_right/c_abf2Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades.https://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccessoai:ddd.uab.cat:2227282026-06-06T12:50:31Z
dc.title.none.fl_str_mv Weather index-based insurance as a meteorological risk management alternative in viticulture
title Weather index-based insurance as a meteorological risk management alternative in viticulture
spellingShingle Weather index-based insurance as a meteorological risk management alternative in viticulture
Martínez-Salgueiro, Andrea|||0000-0001-5973-4971
Weather index-based Insurance
Viticulture
Meteorological risk
Hedging effectiveness
Copula approach
title_short Weather index-based insurance as a meteorological risk management alternative in viticulture
title_full Weather index-based insurance as a meteorological risk management alternative in viticulture
title_fullStr Weather index-based insurance as a meteorological risk management alternative in viticulture
title_full_unstemmed Weather index-based insurance as a meteorological risk management alternative in viticulture
title_sort Weather index-based insurance as a meteorological risk management alternative in viticulture
dc.creator.none.fl_str_mv Martínez-Salgueiro, Andrea|||0000-0001-5973-4971
author Martínez-Salgueiro, Andrea|||0000-0001-5973-4971
author_facet Martínez-Salgueiro, Andrea|||0000-0001-5973-4971
author_role author
dc.subject.none.fl_str_mv Weather index-based Insurance
Viticulture
Meteorological risk
Hedging effectiveness
Copula approach
topic Weather index-based Insurance
Viticulture
Meteorological risk
Hedging effectiveness
Copula approach
description This article explores the hedging potential of two weather index-based insurance programmes designed for the Rias Baixas Protected Designation of Origin (Spain). The first alternative insures both extreme and non-extreme weather events, while the second instrument covers exclusively extreme meteorological states. Two bioclimatic indicators computed for the period most correlated to grape yields are proposed as underlyings: the Branas, Bernon and Levadoux (BBL) and the Ribéreau-Gayon and Peynaud hydrothermal scale (RGP). Yield-weather dependence is then modelled with two different methodological approaches: copulas and linear regression. To asses the risk reducing potential, a hedging effectiveness analysis based on real and simulated data is carried out. The model uses variance and expected shortfall as risk measures. The results attained point out the high hedging ability of both insurance programmes, especially of the first of them based on RGP. This appraisal also reveals that the copula technique outperforms linear regression. Overall, the study results suggest that the implementation of policies geared to bioclimatic indices able to signal adverse weather events can significantly mitigate weather-related yield variations in viticulture.
publishDate 2019
dc.date.none.fl_str_mv 2
2019-01-01
2019
2019-01-01
dc.type.none.fl_str_mv Article
http://purl.org/coar/resource_type/c_6501
VoR
http://purl.org/coar/version/c_970fb48d4fbd8a85
dc.type.openaire.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv https://ddd.uab.cat/record/222728
https://dx.doi.org/urn:doi:10.1016/j.wep.2019.07.002
url https://ddd.uab.cat/record/222728
https://dx.doi.org/urn:doi:10.1016/j.wep.2019.07.002
dc.language.none.fl_str_mv Inglés
eng
language_invalid_str_mv Inglés
language eng
dc.rights.none.fl_str_mv open access
http://purl.org/coar/access_right/c_abf2
https://creativecommons.org/licenses/by-nc-nd/4.0/
dc.rights.openaire.fl_str_mv info:eu-repo/semantics/openAccess
rights_invalid_str_mv open access
http://purl.org/coar/access_right/c_abf2
https://creativecommons.org/licenses/by-nc-nd/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.source.none.fl_str_mv reponame:Dipòsit Digital de Documents de la UAB
instname:Universitat Autònoma de Barcelona
instname_str Universitat Autònoma de Barcelona
reponame_str Dipòsit Digital de Documents de la UAB
collection Dipòsit Digital de Documents de la UAB
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