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Modeling Catastrophic Weather Events And The Risks Of Animal Waste Spills In The Coastal Plain Of North Carolina

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  • Goodwin, Barry K.
  • Hallstrom, Daniel G.

Abstract

This paper considers probabilistic models of hurricane-induced animal waste lagoon failures in North Carolina. A substantial number of waste lagoons exist in areas prone to hurricane damages. We evaluate expected losses which represent actuarially-fair insurance premium rates for a plan that would indemnify producers against damages from lagoon failures. Our results imply annual premiums ranging from under $100 per year to over $2,062 per year. An interesting result is that those areas with the highest levels of expected loss are also those areas with the greatest concentration of waste lagoons.

Suggested Citation

  • Goodwin, Barry K. & Hallstrom, Daniel G., 2004. "Modeling Catastrophic Weather Events And The Risks Of Animal Waste Spills In The Coastal Plain Of North Carolina," 2004 Annual meeting, August 1-4, Denver, CO 20241, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:20241
    DOI: 10.22004/ag.econ.20241
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    References listed on IDEAS

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    1. Paul K. Freeman, 1997. "Managing Environmental Risk Through Insurance," Books, American Enterprise Institute, number 918175, September.
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