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Potential For Index Insurance In Barani Areas Of Pakistan

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  • Hira CHANNA*

Abstract

This paper explores the possibility of utilizing rainfall data and Normalized the Difference Vegetation Index (NDVI) data for developing an insurance product that protects farmers from weather related yield losses of wheat production in Pakistan’s barani areas. This study finds that while rainfall data serves as an effective index, NDVI data (only) partially captures the yield variability in wheat production.

Suggested Citation

  • Hira CHANNA*, 2018. "Potential For Index Insurance In Barani Areas Of Pakistan," Pakistan Journal of Applied Economics, Applied Economics Research Centre, vol. 28(1), pages 1-17.
    • Handle: RePEc:pje:journl:article28sumi
    as

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    File URL: http://www.aerc.edu.pk/wp-content/uploads/2018/04/Paper-733-HIRA-I-1.pdf
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    References listed on IDEAS

    as
    1. Makaudze, Ephias M. & Miranda, Mario J., 2009. "Catastrophic Drought Insurance based on the Remotely Sensed Normalized Difference Vegetation Index for Smallholder Farmers in Zimbabwe," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96183, African Association of Agricultural Economists (AAAE).
    2. Ali, Akhter, 2013. "Farmers’ Willingness to Pay for Index Based Crop Insurance in Pakistan: A Case Study on Food and Cash Crops of Rain-fed Areas," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 26(2).
    3. Barnett, Barry J. & Barrett, Christopher B. & Skees, Jerry R., 2008. "Poverty Traps and Index-Based Risk Transfer Products," World Development, Elsevier, vol. 36(10), pages 1766-1785, October.
    4. Jerry R. Skees & Barry J. Barnett, 2006. "Enhancing microfinance using index-based risk-transfer products," Agricultural Finance Review, Emerald Group Publishing, vol. 66(2), pages 235-250, September.
    5. Mario J. Miranda & Joseph W. Glauber, 1997. "Systemic Risk, Reinsurance, and the Failure of Crop Insurance Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 206-215.
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