On the relationships among durum wheat yields and weather conditions: evidence from Apulia region, Southern Italy

Tappi, Marco and Nardone, Gianluca and Santeramo, Fabio (2022): On the relationships among durum wheat yields and weather conditions: evidence from Apulia region, Southern Italy. Forthcoming in: BAE - Bio-based and Applied Economics

Abstract

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 trigger the indemnification, or a compensation may be granted even if there has not been a yield loss. Our investigation, conducted on Apulia region (Southern Italy), aimed at deepening the knowledge on the linkages between durum wheat yields and weather events, i.e., the working principles of weather index-based insurances, occurring in susceptible phenological phases. We found several connections among weather and yields and highlight the need to collect more refined data to catch further relationships. We conclude opening a reflection on how the stakeholders may make use of publicly available data to design effective weather crop insurances.

• Item Type: MPRA Paper
• Language: English
• Keywords: climate change, farming system, phenological phase, risk, weather insurance
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G22 - Insurance ; Insurance Companies ; Actuarial Studies; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q14 - Agricultural Finance; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q18 - Agricultural Policy ; Food Policy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q54 - Climate ; Natural Disasters and Their Management ; Global Warming

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