Portfolio effects and the willingness to pay for weather insurances

<!DOCTYPE html> <html lang="en" xmlns:mml="http://www.w3.org/1998/Math/MathML"> <head>   <meta charset="utf-8"> <meta http-equiv="X-UA-Compatible" content="IE=edge"> <meta name="viewport" content="width=device-width, initial-scale=1"> <meta name="format-detection" content="telephone=no"> <link rel="canonical" href="https://www.emerald.com/insight/content/doi/10.1108/00214660880001220/full/html" /> <meta name="citation_xml_url" content="https://www.emerald.com/insight/content/doi/10.1108/00214660880001220/full/xml"/>  <meta name="csrf-token" content="3FrKyh3zavMdBbgtPZHOar77OhJVHZxVWMkY99G7"> <title> Portfolio effects and the willingness to pay for weather insurances | Emerald Insight</title> <meta name="description" content="1"> <script type="application/ld+json">{ "@type": "ItemPage", "breadcrumb": { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Journals", "item": "https://www.emerald.com/insight/sitemap/publications#journals" }, { "@type": "ListItem", "position": 2, "name": "Agricultural Finance Review", "item": "https://www.emerald.com/insight/publication/issn/0002-1466" }, { "@type": "ListItem", "position": 3, "name": "Volume 68 Issue 1", "item": "https://www.emerald.com/insight/publication/issn/0002-1466/vol/68/iss/1" }, { "@type": "ListItem", "position": 4, "name": "Portfolio effects and the willingness to pay for weather insurances" } ] }, "mainEntity": { "@type": "ScholarlyArticle", "@id": "#article", "url": "https://www.emerald.com/insight/content/doi/10.1108/00214660880001220/full/html", "name": "Portfolio effects and the willingness to pay for weather insurances", "headline": "Portfolio effects and the willingness to pay for weather insurances", "datePublished": "2008-05-05Z", "description": "Since the mid\u20101990s, agricultural economists have discussed the relevance of index\u2010based insurances, also called \u201cweather derivatives\u201d, as hedging instruments for volumetric risks in agriculture. Motivated by the question of how weather derivatives should be priced for agricultural firms, this paper describes an extended risk\u2010programming model which can be used to determine farmers\u2019 willingness to pay (demand function) for weather derivative\u2019s farm\u2010specific risk reduction capacity and the individual farmer\u2019s risk acceptance. Applying it to the exemplary case of a Brandenburg farm reveals that even a highly standardized contract which is based on the accumulated rainfall at the capital\u2019s meteorological station in Berlin\u2010Tempelhof generates a relevant willingness to pay. Our findings suggest that a potential underwriter could even add a loading on the actuarially fair price which exceeds the level of traditional insurances. Since translation costs are low compared to insurance contracts, this finding indicates there may be a relevant trading potential.", "author": [ { "@type": "Person", "name": "Oliver Musshoff" }, { "@type": "Person", "name": "Norbert Hirschauer" }, { "@type": "Person", "name": "Martin Odening" } ], "pageStart": 83, "pageEnd": 97, "isPartOf": "/insight/publication/issn/0002-1466/vol/68/iss/1#issue", "publisher": { "@type": "Organization", "name": "Emerald Group Publishing Limited" }, "mainEntityOfPage": "https://www.emerald.com/insight/content/doi/10.1108/00214660880001220/full/html" }, "@context": "https://schema.org/" }</script>  <link rel="schema.DC" href="http://purl.org/DC/elements/1.0/"> <meta name="dc.Title" content="Portfolio effects and the willingness to pay for weather insurances"> <meta name="citation_journal_title" content="Agricultural Finance Review"> <meta name="citation_volume" content="68"> <meta name="citation_issue" content="1"> <meta name="citation_firstpage" content="83"> <meta name="citation_lastpage" content="97"> <meta name="dc.Subject" content="Production program planning,Under risk,Rainfall risk,Weather derivatives,Willingness to pay"> <meta name="dc.Description" content="Since the mid‐1990s, agricultural economists have discussed the relevance of index‐based insurances, also called “weather derivatives”, as hedging instruments for volumetric risks in agriculture. Motivated by the question of how weather derivatives should be priced for agricultural firms, this paper describes an extended risk‐programming model which can be used to determine farmers’ willingness to pay (demand function) for weather derivative’s farm‐specific risk reduction capacity and the individual farmer’s risk acceptance. Applying it to the exemplary case of a Brandenburg farm reveals that even a highly standardized contract which is based on the accumulated rainfall at the capital’s meteorological station in Berlin‐Tempelhof generates a relevant willingness to pay. Our findings suggest that a potential underwriter could even add a loading on the actuarially fair price which exceeds the level of traditional insurances. Since translation costs are low compared to insurance contracts, this finding indicates there may be a relevant trading potential."> <meta name="dc.Date" scheme="WTN8601" content="2008-05-05Z"> <meta name="dc.Type" content="article"> <meta name="dc.Format" content="text/html"> <meta name="dc.Identifier" scheme="doi" content="10.1108/00214660880001220"> <meta name="dc.Identifier" scheme="issn" content="0002-1466"> <meta name="dc.Language" content="en"> <meta name="dc.Coverage" content="world"> <meta name="keywords" content="Production program planning,Under risk,Rainfall risk,Weather derivatives,Willingness to pay"> <meta name="dc.Publisher" content="Emerald Group Publishing Limited"> <meta name="DCTERMS.bibliographicCitation" scheme="KEV.ctx" content="&ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.spage=83&rft.epage=97&rft.volume=68&rft.issue=1"> <meta name="dc.Contributor" content="Oliver Musshoff"> <meta name="dc.Contributor" content="Norbert Hirschauer"> <meta name="dc.Contributor" content="Martin Odening">  <link href="/insight/static/css/app.css?id=6dde0abdd0642ca3d7bd4cf4d2f5ae61" rel="stylesheet"> <style type="text/css" nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ=="> /* hide vue content until vue has initialised */ [v-cloak]{ display: none; } /* reduce CLS on page load */ .search-input-container { height: calc(1.5em + .75rem + 4px); } a.navbar-brand > div.extra-small { height: 1rem; } #breadcrumbs-container { min-height: 2.06667rem; } #search-books-and-journals-container { min-height: calc(1.75rem + 11px); margin-bottom: 1rem; } .header_logo_image { height: calc(14rem / (264/36)); } .toc-alert-button { min-width: calc(13.03472rem + 2.5rem + 14px + 2.405px); min-height: calc(1.75556rem + 2px); } </style> <script type="text/javascript" nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ=="> const isReady = (fn) => (document.readyState === "complete" || document.readyState === "interactive") ? setTimeout(fn, 1) : document.addEventListener("DOMContentLoaded", fn) const supportsWebpImages = function () { const elem = document.createElement('canvas'); if (!!(elem.getContext && elem.getContext('2d'))) { // was able or not to get WebP representation return elem.toDataURL('image/webp').indexOf('data:image/webp') === 0; } // very old browser like IE 8, canvas not supported return false; } document.documentElement.classList.add(supportsWebpImages() ? 'webp' : 'no-webp') </script>  <script nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ=="> window.cookieHelper = { /** * Get the value of a specific cookie * @returns {string | undefined} */ getCookieValue: function (key) { return document.cookie .split(';') .map(function(c) { return c.trim().split('=') }) .filter(function(c) { return c[0] === key }) .map(function(c) { return c[1] })[0] }, cookieExists: function (cookieName) { return document.cookie.split(';').some((item) => item.trim().indexOf(cookieName) == 0) }, setCookie: function (cookieName, value, expires, samesite='lax', path='/') { if(expires == null) { const timeOneDay = 24*60*60*1000 expires = new Date(new Date().getTime() + timeOneDay).toUTCString() } document.cookie = `${cookieName}=${value}; expires=${expires}; samesite=${samesite}; path=${path};` }, deleteCookie: function (cookieName) { document.cookie = `${cookieName}=null; expires=${new Date().getTime() - 24*60*60*1000}; Max-Age=0` }, /** * Get a list of the cookie categories that have been disabled * @returns {string[]} A list of disabled cookie categories */ getDisabledCookies: function () { const disableCookiesValue = this.getCookieValue('disabled_cookies') return disableCookiesValue ? disableCookiesValue .split(',') .map(function(c) { return c.trim() }) : [] }, arePerformanceCookiesEnabled: function () { return this.getDisabledCookies().indexOf('performance') < 0 }, areFunctionalCookiesEnabled: function () { return this.getDisabledCookies().indexOf('functional') < 0 } } </script>   <script type="text/javascript" nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ==">(function(c,a){if(!a.__SV){var b=window;try{var d,m,j,k=b.location,f=k.hash;d=function(a,b){return(m=a.match(RegExp(b+"=([^&]*)")))?m[1]:null};f&&d(f,"state")&&(j=JSON.parse(decodeURIComponent(d(f,"state"))),"mpeditor"===j.action&&(b.sessionStorage.setItem("_mpcehash",f),history.replaceState(j.desiredHash||"",c.title,k.pathname+k.search)))}catch(n){}var l,h;window.mixpanel=a;a._i=[];a.init=function(b,d,g){function c(b,i){var a=i.split(".");2==a.length&&(b=b[a[0]],i=a[1]);b[i]=function(){b.push([i].concat(Array.prototype.slice.call(arguments,0)))}}var e=a;"undefined"!==typeof g?e=a[g]=[]:g="mixpanel";e.people=e.people||[];e.toString=function(b){var a="mixpanel";"mixpanel"!==g&&(a+="."+g);b||(a+=" (stub)");return a};e.people.toString=function(){return e.toString(1)+".people (stub)"};l="disable time_event track track_pageview track_links track_forms track_with_groups add_group set_group remove_group register register_once alias unregister identify name_tag set_config reset opt_in_tracking opt_out_tracking has_opted_in_tracking has_opted_out_tracking clear_opt_in_out_tracking people.set people.set_once people.unset people.increment people.append people.union people.track_charge people.clear_charges people.delete_user people.remove".split(" ");for(h=0;h<l.length;h++)c(e,l[h]);var f="set set_once union unset remove delete".split(" ");e.get_group=function(){function a(c){b[c]=function(){call2_args=arguments;call2=[c].concat(Array.prototype.slice.call(call2_args,0));e.push([d,call2])}}for(var b={},d=["get_group"].concat(Array.prototype.slice.call(arguments,0)),c=0;c<f.length;c++)a(f[c]);return b};a._i.push([b,d,g])};a.__SV=1.2;b=c.createElement("script");b.type="text/javascript";b.async=!0;b.crossOrigin='anonymous';b.src="undefined"!==typeof MIXPANEL_CUSTOM_LIB_URL?MIXPANEL_CUSTOM_LIB_URL:"file:"===c.location.protocol&&"//cdn.mxpnl.com/libs/mixpanel-2-latest.min.js".match(/^\/\//)?"https://cdn.mxpnl.com/libs/mixpanel-2-latest.min.js":"//cdn.mxpnl.com/libs/mixpanel-2-latest.min.js";d=c.getElementsByTagName("script")[0];d.parentNode.insertBefore(b,d)}})(document,window.mixpanel||[]);</script> <script nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ=="> let isAuthenticatedPerson = false; let mixpanelIdentity = null; const getMixpanelId = () => { const urlParams = new URLSearchParams(window.location.search); const inputId = urlParams.get('distinct_id'); if (inputId) { // Identify with the passed in distinct id mixpanel.register({'distinct_id' : inputId}); // Remove param from url so that if user bookmarks / shared page they would not reuse the id. urlParams.delete('distinct_id'); window.history.pushState('',document.title, window.location.href.replace(window.location.search, '?' + urlParams)) } } const addMixpanelId = () => { // Some ad blockers and privacy extensions block mixpanel being downloaded, so check this function exists before calling it if (typeof(mixpanel.get_distinct_id) === 'function') { const mixpanelId = mixpanel.get_distinct_id(); // Find all mixpanel_link classes and append distinct_id query param to the end [...document.querySelectorAll('.mixpanel_link')] .forEach(node => { const currentUrl = new URL(node.href) currentUrl.searchParams.delete('distinct_id'); currentUrl.searchParams.append('distinct_id', mixpanelId); node.href = currentUrl.href; }) } } // Parse and register last touch UTM tags as super properties. Also add first touch attribution data as a user profile property. function addUtmParams () { const urlParams = new URLSearchParams(window.location.search) const params = {} const firstParams = {} const campaignKeywords = ['utm_source', 'utm_medium', 'utm_campaign', 'utm_content', 'utm_term'] campaignKeywords.forEach(keyword => { if (!urlParams.has(keyword)) return const kw = urlParams.get(keyword) params[keyword] = kw params[`${keyword} [last touch]`] = kw firstParams[`${keyword} [first touch]`] = kw }) //register last touch UTM mixpanel.people.set(params) mixpanel.register(params) //register first touch UTM mixpanel.people.set_once(firstParams) mixpanel.register_once(firstParams) } const syncMixPanel = () => { getMixpanelId(); addMixpanelId(); addUtmParams(); } mixpanelEvents = { hasReturned: false, stack: [] } function mixpanelUpdateUserDataForEvent(eventName) { if (!isAuthenticatedPerson) { return; } if (['Download', 'Turnaway', 'Saved Search'].includes(eventName)) { mixpanel.people.increment('# of ' + eventName + 's'); } if (eventName === 'Download') { mixpanel.people.set({ 'Last Download Date': new Date() }); mixpanel.identify(mixpanelIdentity); } } function storeOrPushMixpanelEvent(eventType, eventName, data) { if (mixpanelEvents.hasReturned) { mixpanel.push([ eventType, eventName, data ]); } else { mixpanelEvents.stack.push({ eventType, eventName, data }); } } function pushStoredMixpanelEvents () { var sizeOfTracker = mixpanelEvents.stack.length; mixpanelEvents.hasReturned = true; for (var i = 0; i < sizeOfTracker; i++) { var ev = mixpanelEvents.stack[i]; if (typeof ev.eventName === 'undefined') continue; mixpanel.push([ev.eventType, ev.eventName, ev.data]); // Update the mixpanel data now that the user is authenticated. mixpanelUpdateUserDataForEvent(ev.eventName); } } /** * Set up mixpanel to track a link click. This allows mixpanel to make sure the click event is tracked before * a new page is navigated to * Note: This doesn't handle right click -> open in new tab/window. There appears to be no straightforward way to handle * that short of rewriting the links to point to an internal redirect endpoint and handling the mixpanel event there * @param element {HTMLElement} The link element * @param eventName {string} The name of the mixpanel event * @param makeData {function} A function that takes the element and returns the mixpanel properties for the event */ function mixpanelTrackLinkClick(element, eventName, makeData) { // use built-in mixpanel link tracking - this tracks left clicks and enter key mixpanel.track_links(element, eventName, makeData) // handle middle clicks - shortcut for open in new tab element.addEventListener('mousedown', event => { if (event.button === 1) { storeOrPushMixpanelEvent('track', eventName, makeData(event.currentTarget)) } }) } const mixpanelOptions = { api_host: "https://api.mixpanel.com", cookie_expiration: 30, loaded: syncMixPanel, debug: false} mixpanel.init('8e8ac8d2dbd2378f29bd1dd9116a0c9a', mixpanelOptions); </script>    <style nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ==">.async-hide { opacity: 0 !important} </style> <script nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ=="> (function(a,s,y,n,c,h,i,d,e) { s.className+=' '+y; h.start=1*new Date; h.end=i=function(){s.className=s.className.replace(RegExp(' ?'+y),'')}; (a[n]=a[n]||[]).hide=h; setTimeout(function(){i();h.end=null},c); h.timeout=c; }) (window,document.documentElement,'async-hide','dataLayer',4000,{'GTM-KGFMJXR':true}); </script>  <script nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ==" data-nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ==" id="GTM-container">(function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;var n=d.querySelector('[nonce]');n&&j.setAttribute('nonce',n.nonce||n.getAttribute('nonce'));f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-KGFMJXR');</script>  <script nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ=="> ((disableGaKey) => { window[disableGaKey] = !window.cookieHelper.arePerformanceCookiesEnabled() isReady(() => { window.events.$on('cookiesUpdated', () => { window[disableGaKey] = !window.cookieHelper.arePerformanceCookiesEnabled() }) }) })('ga-disable-UA-127317715-1') </script>  <script src="https://kit.fontawesome.com/9d150393c6.js" crossorigin="anonymous" defer></script> <script src="https://scholar.google.com/scholar_js/casa.js" async></script> </head> <body data-spy="scroll" data-target=".table-of-contents" data-offset="220" class="">  <noscript><iframe src="https://www.googletagmanager.com/ns.html?id=GTM-KGFMJXR" height="0" width="0" style="display:none;visibility:hidden"></iframe></noscript>  <div id="cookies-consent"> <cookies-manager banner-class-name="" cookie-policy-url="/insight/site-policies/cookie-policy" root="/insight/" ></cookies-manager> </div> <div id="app" class=" "> <header class="mb-0 mb-lg-0 page-header "> <div id="support-banner-container" style="display:inline"> <support-banner root="/insight/"></support-banner> </div> <div class="d-none"> <div id="browse-content-template"> <nav class="intent_browse_content w-100 medium bg-aquamarine-menu"> <div class="justify-content-around d-flex py-2"> <a href="/insight/browse/publications">Books and journals</a> <a href="/insight/content/case-studies">Case studies</a> <a href="/insight/content/briefings">Expert Briefings</a> <a href="/insight/content/open-access">Open Access</a> </div> </nav> </div> </div> <div class="d-none"> <div id="publish-with-us-template"> <a href="https://www.emeraldgrouppublishing.com/publish-with-us" aria-label="This link opens a new tab where you can access information on how to publish with Emerald." title="This link opens a new tab where you can access information on how to publish with Emerald." target="_blank"> Publish with us <span role="img" aria-hidden="true" class="far fa-external-link ml-1 text-primary"></span> </a> </div> </div> <div id="login-header-container"> <page-header id="login-header" theme="light" root="/insight/" defaultusername="Guest user" reloadpageonlogin="true" routes="{"browseBooksAndJournals":"\/insight\/browse\/publications","caseStudies":"\/insight\/content\/case-studies","open-access":"\/insight\/content\/open-access","briefings":"\/insight\/content\/briefings","logout":"\/insight\/logout","login":"\/insight\/login","register":"\/insight\/register","savedSearches":"\/insight\/savedSearches","myProducts":"\/insight\/products","myProfile":"\/insight\/profile","publishWithUs":"https:\/\/www.emeraldgrouppublishing.com\/publish-with-us","home":"\/insight"}" opencartbaseurl="https://shop.emerald.com/" show_cart_menu="1" account="" additionalaccount = "" country_code="SG"> <template v-slot:default="props"> <meta name="EZproxyRewriting" content="disable"> <welcome-message class="bg-pale-blue text-dark topHeader" message="Welcome " :banner-message-array="props.welcomeTexts" :is-administrator="props.account.isAdministrator" amp-url="https://manage.emerald.com/"> </welcome-message> <meta name="EZproxyRewriting" content="enable"> </template> </page-header> </div> <div class="nav-div nav-div-search bg-primary py-1 py-md-2 text-dark"> <div class="container d-sm-flex d-flex-row align-items-center"> <div class="flex-grow-1 search-input-container"> <search-content action="/insight/search" advancedsearch="/insight/advanced-search" publicationurl="/insight/publication" value="" placeholder="Enter your search terms here" autocomplete="/insight/search/title" v-bind:errors="[]" v-bind:showall="true" v-bind:openaccess="false" v-bind:home="false"> </search-content> </div> <div class="d-flex d-flex-row align-items-center justify-content-end"> <div class="pr-0 small mr-0 my-0 text-center text-right text-md-left advanced-search-text"> <a class="intent_AdvancedSearch font-size-small btn btn-link rounded-0 px-2 py-0 py-md-2 text-white" href="/insight/advanced-search">Advanced <br class="d-none d-sm-inline d-md-none" />search</a> </div> </div> </div> </div> <div id="alert-notification-container"> <alert-notification></alert-notification> </div> </header> <main role="main" class="main-content" id="mainContent" tabindex="0"> <div class="ml-0 w-100 bg-white"> <div id="breadcrumbs" class="container"> <div class="row ml-0" id="breadcrumbs-container"> <breadcrumbs root="/insight/" crumbs="[["Journals","\/sitemap\/publications#journals"],["Agricultural Finance Review","\/publication\/issn\/0002-1466"],["Volume 68 Issue 1","\/publication\/issn\/0002-1466\/vol\/68\/iss\/1"],["Portfolio effects and the willingness to pay for weather insurances",""]]"> </breadcrumbs> </div> </div> </div> <div id="turnaway-block" class="container-fluid content_block turnaway"> <div class="row turnaway__message"> <div class="container"> <div class="row"> <div class="offset-md-2 col-md-10 pt-3"> <h2 class="h4 mt-0 mb-3">To read this content please select one of the options below:</h2> <div class="container"> <div class="row"> <div class="ml-3 mb-3 col-m"> <add-to-cart doi="10.1108/00214660880001220" parent-identifier="0002-1466" title="Portfolio effects and the willingness to pay for weather insurances" parent-title="Agricultural Finance Review" :mixpanel-data='{"URI":"\/content\/doi\/10.1108\/00214660880001220\/full\/html","Format":"HTML","Content ID \/ DOI":"10.1108\/00214660880001220","Content Title":"Portfolio effects and the willingness to pay for weather insurances","Parent Title":"Agricultural Finance Review","Year Of Publication":"2008","Publication Date":"5 May 2008","Access Method":"User","Access Type":"controlled","Parent Type":"journal","Print ISSN":"0002-1466","Parent ID \/ DOI":"10.1108\/afr","pISBN":"","eISBN":"","ISBN":"","Content Type":"article"}' image="https://www.emerald.com/insight/proxy/containerimg?link=/resource/publication/journal/b961cf029b2396d1d950d53988a62d57/urn:emeraldgroup.com:asset:id:binary:afr.cover.jpg" content-type="article" parent-type="journal" isbn="" issn="0002-1466" publication-date="5 May 2008" account="" additionalaccount="" opencart_base_url="https://shop.emerald.com/" root="/insight/" country_code="SG" origin_view="outside_dropdown" ></add-to-cart> </div> <span class="border-right border-dark divider border-cta"></span> <div class="sa_btn mr-3"> <iframe class="sa_frame overflow-hidden border-0" src="/insight/liblynx/seamless-access.html" title="Access through your institution" scrolling="no"></iframe> </div> <div class="dropdown mb-3"> <button class="btn btn-default dropdown-toggle text-light turnaway__dropdown d-flex align-items-center pl-2" type="button" id="menu1" data-toggle="dropdown" data-boundary="window" data-flip="false"> <img src="/insight/static/img/logo-white.svg" alt="Emerald logo icon" width="43" class="border-right border-white pr-2"/> <span class="flex-grow-1">Access and purchase options</span> <span class="caret"></span> </button> <div class="dropdown-menu rounded-0 turnaway__dropdownmenu" role="menu" id="access-popup" aria-labelledby="menu1"> <div class="container"> <div class="row align-middle turnaway__dropdownborderbottom bg-purchase"> <div class="col-12 mt-2 mb-3"> <span class="d-inline-block font-weight-bold">Purchase options</span> </div> </div> <add-to-cart doi="10.1108/00214660880001220" parent-identifier="0002-1466" title="Portfolio effects and the willingness to pay for weather insurances" parent-title="Agricultural Finance Review" :mixpanel-data='{"URI":"\/content\/doi\/10.1108\/00214660880001220\/full\/html","Format":"HTML","Content ID \/ DOI":"10.1108\/00214660880001220","Content Title":"Portfolio effects and the willingness to pay for weather insurances","Parent Title":"Agricultural Finance Review","Year Of Publication":"2008","Publication Date":"5 May 2008","Access Method":"User","Access Type":"controlled","Parent Type":"journal","Print ISSN":"0002-1466","Parent ID \/ DOI":"10.1108\/afr","pISBN":"","eISBN":"","ISBN":"","Content Type":"article"}' image="https://www.emerald.com/insight/proxy/containerimg?link=/resource/publication/journal/b961cf029b2396d1d950d53988a62d57/urn:emeraldgroup.com:asset:id:binary:afr.cover.jpg" content-type="article" parent-type="journal" isbn="" issn="0002-1466" publication-date="5 May 2008" account="" additionalaccount="" opencart_base_url="https://shop.emerald.com/" root="/insight/" country_code="SG" origin_view="dropdown" ></add-to-cart> <div class="row align-middle turnaway__dropdownborderbottom"> <div class="col-12 mt-2 mb-3"> <span class="d-inline-block">Rent this content from DeepDyve</span> </div> <div class="col-12 p-3 mb-3"> <a data-event-name="Rent Content" href="https://www.deepdyve.com/doc-view?docId=10.1108/00214660880001220&fieldName=journal_doi&journal=0002-1466&affiliateId=emerald" target="_blank" class="clickIntercept btn btn-ecomm rounded-pill p-0 text-center d-flex turnaway__button" > <span class="flex-grow-1 align-self-center medium pl-4 pr-4">Rent from DeepDyve</span> <span role="img" aria-hidden="true" class="rounded-circle my-auto bg-ecomm fal fa-shopping-cart text-white d-flex justify-content-center align-items-center turnaway__button-icon"></span> </a> </div> </div> <div class="row align-middle turnaway__dropdownborderbottom bg-other"> <div class="col-12 mt-2 mb-3"> <span class="d-inline-block font-weight-bold">Other access</span> </div> </div> <div class="row align-middle turnaway__dropdownborderbottom"> <div class="col-12 mt-2 mb-3"> <span class="d-inline-block">You may be able to access this content by logging in via your Emerald profile.</span> </div> <div class="col-12 p-3 mb-3"> <a href="/insight/login?hide=federated" class="intent_wayf_login turnaway-login-link btn btn-primary rounded-pill p-0 mb-3 d-flex align-items-center justify-content-end turnaway__button" > <span class="flex-grow-1 align-self-center medium pl-4 pr-4">Login</span> <span role="img" aria-hidden="true" class="rounded-circle my-auto bg-insight fal fa-xs fa-user text-white d-flex justify-content-center align-items-center turnaway__button-icon"></span> </a> </div> </div> <div class="row align-middle"> <div class="col-12 mt-2 mb-3"> <span class="d-inline-block">If you think you should have access to this content, click to contact our support team.</span> </div> <div class="col-12 p-3 mb-3"> <a data-event-name="Submit Turnaway Enquiry" href="https://emeraldpublishinggroup.freshdesk.com/support/home" target="_blank" class="clickIntercept intent_wayf_enquiry btn btn-primary rounded-pill p-0 text-center d-flex turnaway__button" > <span class="flex-grow-1 align-self-center medium pl-4 pr-4">Contact us</span> <span role="img" aria-hidden="true" class="rounded-circle my-auto bg-insight fal fa-caret-right text-white d-flex justify-content-center align-items-center turnaway__button-icon"></span> </a> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> <div id="teaching-notes-turnaway-block" class="container-fluid content_block turnaway" style="display:none;"> <div class="row turnaway__message"> <div class="container"> <div class="row"> <div class="offset-md-2 col-md-10 pt-3"> <h2 class="h4 mt-0 mb-3">Please note you do not have access to teaching notes</h2> <div class="container"> <div class="row"> <div class="sa_btn mr-3"> <iframe class="sa_frame overflow-hidden border-0" src="/insight/liblynx/seamless-access.html" title="Access through your institution" scrolling="no"></iframe> </div> <div class="dropdown mb-3"> <button class="btn btn-default dropdown-toggle text-light turnaway__dropdown d-flex align-items-center pl-2" type="button" id="menu1" data-toggle="dropdown" data-boundary="window" data-flip="false"> <img src="/insight/static/img/logo-white.svg" alt="Emerald logo icon" width="43" class="border-right border-white pr-2"/> <span class="flex-grow-1">Access and purchase options</span> <span class="caret"></span> </button> <div class="dropdown-menu rounded-0 turnaway__dropdownmenu" role="menu" id="access-popup" aria-labelledby="menu1"> <div class="container"> <div class="row align-middle turnaway__dropdownborderbottom bg-purchase"> <div class="col-12 mt-2 mb-3"> <span class="d-inline-block font-weight-bold">Purchase options</span> </div> </div> <add-to-cart doi="10.1108/00214660880001220" parent-identifier="0002-1466" title="Portfolio effects and the willingness to pay for weather insurances" parent-title="Agricultural Finance Review" :mixpanel-data='{"URI":"\/content\/doi\/10.1108\/00214660880001220\/full\/html","Format":"HTML","Content ID \/ DOI":"10.1108\/00214660880001220","Content Title":"Portfolio effects and the willingness to pay for weather insurances","Parent Title":"Agricultural Finance Review","Year Of Publication":"2008","Publication Date":"5 May 2008","Access Method":"User","Access Type":"controlled","Parent Type":"journal","Print ISSN":"0002-1466","Parent ID \/ DOI":"10.1108\/afr","pISBN":"","eISBN":"","ISBN":"","Content Type":"article"}' image="https://www.emerald.com/insight/proxy/containerimg?link=/resource/publication/journal/b961cf029b2396d1d950d53988a62d57/urn:emeraldgroup.com:asset:id:binary:afr.cover.jpg" content-type="article" parent-type="journal" isbn="" issn="0002-1466" publication-date="5 May 2008" account="" additionalaccount="" opencart_base_url="https://shop.emerald.com/" root="/insight/" country_code="SG" origin_view="dropdown" ></add-to-cart> <div class="row align-middle turnaway__dropdownborderbottom bg-other"> <div class="col-12 mt-2 mb-3"> <span class="d-inline-block font-weight-bold">Other access</span> </div> </div> <div class="row align-middle turnaway__dropdownborderbottom"> <div class="col-12 mt-2 mb-3"> <span class="d-inline-block">You may be able to access teaching notes by logging in via your Emerald profile.</span> </div> <div class="col-12 p-3 mb-3"> <a href="/insight/login?hide=federated" class="intent_wayf_login turnaway-login-link btn btn-primary rounded-pill p-0 mb-3 d-flex align-items-center justify-content-end turnaway__button" > <span class="flex-grow-1 align-self-center medium pl-4 pr-4">Login</span> <span role="img" aria-hidden="true" class="rounded-circle my-auto bg-insight fal fa-xs fa-user text-white d-flex justify-content-center align-items-center turnaway__button-icon"></span> </a> </div> </div> <div class="row align-middle"> <div class="col-12 mt-2 mb-3"> <span class="d-inline-block">If you think you should have access to this content, click to contact our support team.</span> </div> <div class="col-12 p-3 mb-3"> <a data-event-name="Submit Turnaway Enquiry" href="https://emeraldpublishinggroup.freshdesk.com/support/solutions/articles/36000063571" target="_blank" class="clickIntercept intent_wayf_enquiry btn btn-primary rounded-pill p-0 text-center d-flex turnaway__button" > <span class="flex-grow-1 align-self-center medium pl-4 pr-4">Contact us</span> <span role="img" aria-hidden="true" class="rounded-circle my-auto bg-insight fal fa-caret-right text-white d-flex justify-content-center align-items-center turnaway__button-icon"></span> </a> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> <div class="container content_block"> <div class="row"> <div class="offset-md-2 col-md-10"> <header class="py-3"> <h1 class="content-title intent_article_title mt-0 mb-3">Portfolio effects and the willingness to pay for weather insurances</h1> <section id="intent_contributors" class="mt-4 intent_contributors"> <contributor-block block="<span class="m:contributor-display"><div class="contrib_block__contrib intent_contributor" contrib-type="author"><a rel="nofollow" class="contrib-search" href="/insight/search?q=Oliver Musshoff" aria-label="Search for more content by contributor Oliver Musshoff"> <span class="given-names">Oliver</span> <span class="surname">Musshoff</span> </a></div><span class="x"> </span><div class="contrib_block__contrib intent_contributor" contrib-type="author"><a rel="nofollow" class="contrib-search" href="/insight/search?q=Norbert Hirschauer" aria-label="Search for more content by contributor Norbert Hirschauer"> <span class="given-names">Norbert</span> <span class="surname">Hirschauer</span> </a></div><span class="x"> </span><div class="contrib_block__contrib intent_contributor" contrib-type="author"><a rel="nofollow" class="contrib-search" href="/insight/search?q=Martin Odening" aria-label="Search for more content by contributor Martin Odening"> <span class="given-names">Martin</span> <span class="surname">Odening</span> </a></div></span>" contrib-count="3" affil-count="0"> <span class="m:contributor-display"><div class="contrib_block__contrib intent_contributor" contrib-type="author"><a rel="nofollow" class="contrib-search" href="/insight/search?q=Oliver Musshoff" aria-label="Search for more content by contributor Oliver Musshoff"> <span class="given-names">Oliver</span> <span class="surname">Musshoff</span> </a></div><span class="x"> </span><div class="contrib_block__contrib intent_contributor" contrib-type="author"><a rel="nofollow" class="contrib-search" href="/insight/search?q=Norbert Hirschauer" aria-label="Search for more content by contributor Norbert Hirschauer"> <span class="given-names">Norbert</span> <span class="surname">Hirschauer</span> </a></div><span class="x"> </span><div class="contrib_block__contrib intent_contributor" contrib-type="author"><a rel="nofollow" class="contrib-search" href="/insight/search?q=Martin Odening" aria-label="Search for more content by contributor Martin Odening"> <span class="given-names">Martin</span> <span class="surname">Odening</span> </a></div></span> </contributor-block> </section> <div class="mb-2 row"> <div class="col-12 col-md-6"> <p> <span class="intent_journal_title"><a href="/insight/publication/issn/0002-1466">Agricultural Finance Review</a></span> </p> <p class="mt-0"> <span> <abbr title="International Standard Serial Number." class="font-weight-normal">ISSN</abbr>: <span class="intent_journal_issn">0002-1466</span> </span> </p> <p class="mt-0"> <span class="intent_journal_publication_date">Article publication date: 5 May 2008</span> <span class="ml-2" id="rights-link"> <rights-link-button root="https://marketplace.copyright.com/rs-ui-web/mp/search/all/" doi="10.1108/00214660880001220"> </rights-link-button> </span> </p> </div> <div class="col-12 col-md-6 d-flex mt-3 mt-md-0"> <div class="d-flex flex-column align-items-center pr-3"> <label class="mini-caps" id="downloadCountLabel-1">Downloads</label> <div class="text-primary pt-2 d-flex align-items-center intent_download_counts_badge" aria-labelledby="downloadCountLabel-1" title="This item has been downloaded 518 times since 2008." data-toggle="tooltip" data-placement="right" tabindex="0"> <span class="fal fa-file-download fa-2x px-1"></span> <span class="intent_download_count small flex-grow-1 text-center"> 518 </span> </div> </div> <div class="altmetric-mount"> <altmetric-badge root="/insight/" content-doi="10.1108/00214660880001220" publication-doi="10.1108/afr"> </altmetric-badge> </div> </div> </div> </header> </div> </div> </div> <div class="container content_block" > <div class="row"> <div class="offset-md-2 col-md-7"> <section id="abstract" class="intent_abstract mb-5 Abstract" tabindex="0"> <h2 class="intent_title Abstract__title mb-1">Abstract</h2> <div class="intent_sub_item Abstract__block"> <h3 class="intent_sub_title Abstract__block__title mb-1 mt-3"></h3> <section class="intent_sub_content Abstract__block__text"> <p>Since the mid‐1990s, agricultural economists have discussed the relevance of index‐based insurances, also called “weather derivatives”, as hedging instruments for volumetric risks in agriculture. Motivated by the question of how weather derivatives should be priced for agricultural firms, this paper describes an extended risk‐programming model which can be used to determine farmers’ willingness to pay (demand function) for weather derivative’s farm‐specific risk reduction capacity and the individual farmer’s risk acceptance. Applying it to the exemplary case of a Brandenburg farm reveals that even a highly standardized contract which is based on the accumulated rainfall at the capital’s meteorological station in Berlin‐Tempelhof generates a relevant willingness to pay. Our findings suggest that a potential underwriter could even add a loading on the actuarially fair price which exceeds the level of traditional insurances. Since translation costs are low compared to insurance contracts, this finding indicates there may be a relevant trading potential.</p> </section> </div> </section> <section id="keywords_list" class="intent_keywords"> <h2 class="intent_title" id="page__keywords-label">Keywords</h2> <ul class="intent_paragraph list-inline" aria-labelledby="page__keywords-label"> <li class="list-inline-item mr-0"> <a rel="nofollow" href="/insight/search?q=Production+program+planning"class="intent_link btn btn-outline-secondary btn-sm my-1"title="Search for keyword Production program planning"><span class="intent_text">Production program planning</span></a></li> <li class="list-inline-item mr-0"> <a rel="nofollow" href="/insight/search?q=Under+risk"class="intent_link btn btn-outline-secondary btn-sm my-1"title="Search for keyword Under risk"><span class="intent_text">Under risk</span></a></li> <li class="list-inline-item mr-0"> <a rel="nofollow" href="/insight/search?q=Rainfall+risk"class="intent_link btn btn-outline-secondary btn-sm my-1"title="Search for keyword Rainfall risk"><span class="intent_text">Rainfall risk</span></a></li> <li class="list-inline-item mr-0"> <a rel="nofollow" href="/insight/search?q=Weather+derivatives"class="intent_link btn btn-outline-secondary btn-sm my-1"title="Search for keyword Weather derivatives"><span class="intent_text">Weather derivatives</span></a></li> <li class="list-inline-item mr-0"> <a rel="nofollow" href="/insight/search?q=Willingness+to+pay"class="intent_link btn btn-outline-secondary btn-sm my-1"title="Search for keyword Willingness to pay"><span class="intent_text">Willingness to pay</span></a></li> </ul> </section> <section class="Citation mb-2"> <h2 class="h4 intent_citation Citation__title">Citation</h2> <p> <a rel="nofollow" href="/insight/search?q=Oliver Musshoff" title="Oliver Musshoff" class="font-weight-light link-dark">Musshoff, O.</a>, <a rel="nofollow" href="/insight/search?q=Norbert Hirschauer" title="Norbert Hirschauer" class="font-weight-light link-dark">Hirschauer, N.</a> and <a rel="nofollow" href="/insight/search?q=Martin Odening" title="Martin Odening" class="font-weight-light link-dark">Odening, M.</a> (2008), "Portfolio effects and the willingness to pay for weather insurances", <i><a href="/insight/publication/issn/0002-1466">Agricultural Finance Review</a></i>, Vol. 68 No. 1, pp. 83-97. <a class='intent_doi_link Citation__identifier__link' href='https://doi.org/10.1108/00214660880001220' title='DOI: https://doi.org/10.1108/00214660880001220'>https://doi.org/10.1108/00214660880001220</a> </p> <div id="citation-download"> <citation-download doi="10.1108/00214660880001220" root="/insight/"/> </div> </section> <section class="mt-1 Body" v-pre> <h2 class="d-inline h4" id="page__publisher-label">Publisher</h2>: <p class="publisher d-inline" aria-labelledby="page__publisher-label">Emerald Group Publishing Limited</p> </section> <p class="Citation__identifier"> Copyright <span class="intent_copyright_text">© 2008, Emerald Group Publishing Limited</span> </p> </div> <div class="col-12 col-md-3"> <h2 class="trendmd-replacement-heading mt-4">Related articles</h2> <div id="trendmd-suggestions"></div> </div> </div> </div> </main> <flash message=""></flash> <div id="feedback-strip" class="header-feedback dropdown "> <div class="header-feedback__link "> <button type="button" class="intent_header_feedback_link header-feedback__link-button collapsed" data-toggle="collapse" data-target="#header-feedback-content" aria-expanded="false" > <div class="header-feedback__link-left font-weight-bold text-left"> <span id="header-feedback__link-text">Support & Feedback</span> <span id="header-feedback__link-caret" class="toggleCaret fas fa-caret-up fa-lg ml-1"></span> </div> </button> <a href="#" class="header-feedback__link-cookie-button text-white intent_cookie_manage" data-toggle="modal" data-target="#manage-cookies-modal"> Manage cookies </a> </div> <div id="header-feedback-content" class="intent_header_feedback_content header-feedback__content collapse pt-4 pb-4 text-center text-white"> <div class="container"> <div class="row px-lg-5"> <div class="col-12 col-md-6 text-left mb-4 mb-md-0"> <h3>All feedback is valuable</h3> <p>Please <a href="https://eu.surveymonkey.com/r/DGMS7Z8" class="text-light" target="_blank">share your general feedback</a></p> </div> <div class="col-12 col-md-6 text-left"> <h3>Report an issue or find answers to frequently asked questions</h3> <p>Contact <a href="https://emeraldpublishinggroup.freshdesk.com/support/home" class="text-light" target="_blank">Customer Support</a></p> </div> </div> </div> </div> </div> <div id="feedback-underlay" class="feedback-underlay"> </div> <footer role="contentinfo" class="bg-dark pt-4 text-center text-white"> <div class="container"> <div class="row px-lg-5 pb-3"> <div class="col-12 col-md-3 text-md-left pl-md-2 pr-md-4 pb-4 pb-md-0 text-white"> <img data-src="/insight/static/img/emerald_publishing_logo-white.svg" class="img-fluid w-75 mw-sm-100 mw-xl-50 b-lazy" alt="Emerald logo" /> <div class="mt-3 ml-md-n1 d-flex flex-row justify-content-center justify-content-md-start align-self-center"> <ul class="list-inline my-2 mt-md-2 mt-lg-0"> <li class="list-inline-item"><a href="https://twitter.com/EmeraldGlobal" target="_blank" rel="noopener noreferrer" title="Twitter (opens in new window)" aria-label="Twitter (opens in new window)" class="text-white font-size-small p-1"><span role="img" class="fab fa-twitter"></span></a></li> <li class="list-inline-item"><a href="https://www.facebook.com/EmeraldPublishingImpact/" target="_blank" rel="noopener noreferrer" title="Facebook (opens in new window)" aria-label="Facebook (opens in new window)" class="text-white font-size-small p-1"><span role="img" class="fab fa-facebook-f"></span></a></li> <li class="list-inline-item"><a href="https://www.linkedin.com/company/emerald-group-publishing-limited" target="_blank" rel="noopener noreferrer" title="LinkedIn (opens in new window)" aria-label="LinkedIn (opens in new window)" class="text-white font-size-small p-1"><span role="img" class="fab fa-linkedin-in"></span></a></li> <li class="list-inline-item"><a href="https://www.youtube.com/user/EmeraldPublishing67" target="_blank" rel="noopener noreferrer" title="YouTube (opens in new window)" aria-label="YouTube (opens in new window)" class="text-white font-size-small p-1"><span role="img" class="fab fa-youtube-square"></span></a></li> </ul> </div> <div class="text-white font-size-xsmall font-weight-light">© 2025 Emerald Publishing Limited. All rights reserved, including rights for text and data mining, artificial intelligence training and similar technologies.</div> </div>  <div class="col-12 col-md-3 text-md-left pl-md-5 pb-4 pb-md-0"> <h2 class="h4 mb-md-3">Services</h2> <ul class="list-unstyled my-0"> <li><a href="https://www.emeraldgrouppublishing.com/services/authors" class="mixpanel_link intent_footer_link_services_authors text-white font-size-small font-weight-light" target="_blank" rel="noopener noreferrer" aria-label="Authors (opens in new window)" title="Authors (opens in new window)">Authors</a></li> <li><a href="https://www.emeraldgrouppublishing.com/services/journal-editors" class="mixpanel_link intent_footer_link_services_editors text-white font-size-small font-weight-light" target="_blank" rel="noopener noreferrer" aria-label="Editors (opens in new window)" title="Editors (opens in new window)">Editors</a></li> <li><a href="https://www.emeraldgrouppublishing.com/services/librarians" class="mixpanel_link intent_footer_link_services_librarians text-white font-size-small font-weight-light" target="_blank" rel="noopener noreferrer" aria-label="Librarians (opens in new window)" title="Librarians (opens in new window)">Librarians</a></li> <li><a href="https://www.emeraldgrouppublishing.com/services/researchers" class="mixpanel_link intent_footer_link_services_research text-white font-size-small font-weight-light" target="_blank" rel="noopener noreferrer" aria-label="Researchers (opens in new window)" title="Researchers (opens in new window)">Researchers</a></li> <li><a href="https://www.emeraldgrouppublishing.com/services/reviewers" class="mixpanel_link intent_footer_link_services_reviewers text-white font-size-small font-weight-light" target="_blank" rel="noopener noreferrer" aria-label="Reviewers (opens in new window)" title="Reviewers (opens in new window)">Reviewers</a></li> </ul> </div> <div class="col-12 col-md-3 text-md-left pb-4 pb-md-0"> <h2 class="h4 mb-md-3">About</h2> <ul class="list-unstyled my-0"> <li><a href="https://www.emeraldgrouppublishing.com/about/" target="_blank" rel="noopener noreferrer" aria-label="About Emerald (opens in new window)" title="About Emerald (opens in new window)" class="mixpanel_link intent_footer_link_about_emerald text-white font-size-small font-weight-light">About Emerald</a></li> <li><a href="https://careers.emeraldpublishing.com" target="_blank" rel="noopener noreferrer" aria-label="Working for Emerald (opens in new window)" title="Working for Emerald (opens in new window)" class="intent_footer_link_about_working text-white font-size-small font-weight-light">Working for Emerald</a></li> <li><a href="https://www.emeraldgrouppublishing.com/about/contact-us" target="_blank" rel="noopener noreferrer" aria-label="Contact us (opens in new window)" title="Contact us (opens in new window)" class="mixpanel_link intent_footer_link_about_contact text-white font-size-small font-weight-light">Contact us</a></li> <li><a href="/insight/sitemap/publications" class="intent_footer_link_publication_sitemap text-white font-size-small font-weight-light">Publication sitemap</a></li> </ul> </div> <div class="col-12 col-md-3 text-md-left"> <h2 class="h4 mb-md-3">Policies and information</h2> <ul class="list-unstyled my-0"> <li><a href="/insight/site-policies" class="intent_footer_link_policies_privacy text-white font-size-small font-weight-light">Privacy notice</a></li> <li><a href="/insight/site-policies" class="intent_footer_link_policies_site_policies text-white font-size-small font-weight-light">Site policies</a></li> <li><a href="https://www.emeraldgrouppublishing.com/about/policies-and-information/modern-slavery-act" target="_blank" rel="noopener noreferrer" aria-label="Modern Slavery Act (opens in new window)" title="Modern Slavery Act (opens in new window)" class="mixpanel_link intent_footer_link_policies_modern_slavery text-white font-size-small font-weight-light">Modern Slavery Act</a></li> <li><a href="https://www.emeraldgrouppublishing.com/sites/default/files/2020-08/MCB-Pension-Chair-Statement-2019.pdf" target="_blank" rel="noopener noreferrer" aria-label="Chair of Trustees governance statement (opens in new window, PDF, 511 KB)" title="Chair of Trustees governance statement (opens in new window, PDF, 511 KB)" class="mixpanel_link intent_footer_link_trustees_governance_statement text-white font-size-small font-weight-light">Chair of Trustees governance statement</a></li> <li><a href="/insight/accessibility" class="intent_footer_link_accessibility text-white font-size-small font-weight-light">Accessibility</a></li> </ul> </div> </div> </div> </footer> <div id="topscroll"> <top-scroll text="Back to top" visibleoffset="500"></top-scroll> </div> </div> <script type="text/javascript" nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ=="> window.subDir = "/insight/" function document_ready (callback) { if (document.readyState !== 'loading') { callback() } else { document.addEventListener('DOMContentLoaded', callback) } } // Replacement for $(element).on(event, selector, handler), as addEventListener // does not support the selector parameter. function add_event_listener(element, event, selector, handler) { if (element === null) { return } element.addEventListener(event, function (e) { for (let target = e.target; target && target !== this; target = target.parentNode) { if (target instanceof Element && target.matches(selector)) { handler.call(target, e) } } }, false) } </script> <script src="/insight/static/js/manifest.js?id=fff167301d4d9fb1c7323ec4157a7f1a" defer></script> <script src="/insight/static/js/vendor.js?id=80d07660be06b638fe15689713278081" defer></script> <script src="/insight/static/js/app.js?id=1c4fefd75d815cb4da3f7521c58a23c1" defer></script> <script src="/insight/static/js/vendor/dragscroll.js?id=150f32f78896241390129daaff2ebed9" defer></script> <script src="/insight/static/js/mixpanel/mixpanel.js?id=e5b92ead390022b93ec2b060ffa97f2a" defer></script> <script type="text/javascript" nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ=="> document_ready(function () { // enable bootstrap tooltips globally $('[data-toggle="tooltip"]').tooltip() }) </script> <script type="text/javascript" nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ=="> document_ready(function () { document.querySelector('.header-feedback__link-button').addEventListener('click', function () { $('#header-feedback__link-caret').toggleClass('fa-caret-up fa-caret-down'); if( $('#header-feedback__link-text').text() == 'Close') { $('#header-feedback__link-text').text('Support & Feedback'); $('#feedback-underlay').hide(); } else { $('#header-feedback__link-text').text('Close'); $('#feedback-underlay').show(); } }); let scrollMagnet = $('.scroll-magnet-item') if (typeof scrollMagnet[0] === 'undefined') { return } $.get(window.subDir + 'api/banner', function (data) { if (data.status === 'Down') { let bodyElement = $('body') bodyElement.attr('data-offset', 215) let scrollMagnet = $('.scroll-magnet-item') if (typeof scrollMagnet[0] === 'undefined') { return } let observer = new MutationObserver(function () { const scrollingBanner = 'is-scrolling--support-banner' const isScrolling = 'is-scrolling' if (scrollMagnet.hasClass(isScrolling) && !scrollMagnet.hasClass(scrollingBanner)) { scrollMagnet.addClass(scrollingBanner) } if (!scrollMagnet.hasClass(isScrolling) && scrollMagnet.hasClass(scrollingBanner)) { scrollMagnet.removeClass(scrollingBanner) } }) observer.observe(scrollMagnet[0], { attributes: true, attributeFilter: ['class'], childList: false, characterData: false }) } }) }) </script> <script src="/insight/static/js/mixpanel/mixpanel-cookies.js?id=c4e7834657ab216bce3e17652d5df338" defer></script> <script type="application/javascript" nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ=="> document_ready(function() { if (document.referrer) { document.querySelectorAll('.turnaway-login-link').forEach(link => { const loginHref = new URL(link.href) loginHref.searchParams.set('referrer', document.referrer) // We pass this page's referrer to /login so that later we can record the initial referrer without the roundtrip // to liblynx muddying the waters. We have to get it via JS because this page may be cached at the CDN for guest // users, in which case the server-written version of the referrer may be incorrect link.href = loginHref }) } }) </script> <script nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ=="> document.querySelector('#access-popup').addEventListener('click', function (event) { event.stopPropagation() }) </script> <script nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ=="> document.querySelector('#access-popup').addEventListener('click', function (event) { event.stopPropagation() }) </script> <div id="shivPlaceholder" tabindex="-1" class="shivContents position-relative text-center mt-3 mb-3 px-5 py-3 pt-4 border table-responsive" style="display: none"> <div style="z-index: 999; right: 1rem; top: 0;" class="position-absolute shiv-header row text-right"> <button style="font-size: 2.1rem; width:2.1rem; height:2.1rem; overflow: hidden;" type="button" class="close" title="Close"> <span aria-hidden="true">×</span> </button> </div> <div class="free dragscroll"> <div class="shivContent d-inline-block m-auto text-left position-relative"></div> </div> </div> <script src="/insight/static/js/emerald/js_shiv.js?id=6543f088683d4e0e4889130b3e10439b" defer></script> <script type="text/javascript" id="trendmd-block" nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ=="> if (window.cookieHelper.areFunctionalCookiesEnabled()) { /** * If we just included the script, it would execute at a deferred point in time, * regardless of our cookie setting, therefore it's added as a script element only * on condition that functional cookies have actually been enabled **/ const trendmdBlock = document.getElementById("trendmd-block"); const trendmdScriptTag = document.createElement("script"); trendmdScriptTag.src ='//js.trendmd.com/trendmd.min.js'; trendmdScriptTag.setAttribute('data-trendmdconfig', '{"element":"#trendmd-suggestions"}'); trendmdScriptTag.setAttribute('defer', 'true'); trendmdBlock.append(trendmdScriptTag); const eventName = 'TrendMD' function mixpanelProperties (el) { const url = (el.href || '').split('?')[0] return { 'Article name': el.text, 'Format': url.endsWith('.pdf') ? 'PDF' : 'HTML', 'Link Type': url.includes('emerald') ? 'Internal' : 'External', url: el.href } } let alreadySeenLinks = [] isReady(() => { const suggestions = document.querySelector('#trendmd-suggestions') suggestions.classList.add('d-none') const suggestionsHeader = document.querySelector('.trendmd-replacement-heading') suggestionsHeader.classList.add('d-none') add_event_listener(suggestions, 'DOMNodeInserted', '.trendmd-widget-list', event => { const links = Array.from(event.currentTarget.querySelectorAll('a.trendmd-widget-list-item__link')) const newLinks = links.filter(l => !alreadySeenLinks.includes(l)) // add new links to the already seen list so we can make sure we don't attach listeners to them more than once alreadySeenLinks = alreadySeenLinks.concat(newLinks) newLinks.forEach(link => mixpanelTrackLinkClick(link, eventName, mixpanelProperties)) suggestionsHeader.classList.remove('d-none') suggestions.classList.remove('d-none') }) }); } </script> <script type='text/javascript' src='https://d1bxh8uas1mnw7.cloudfront.net/assets/embed.js' defer></script> <script nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ=="> function elementExists (targetName) { return targetName !== null && typeof targetName !== 'undefined'; } function toggleTurnawayDisplay ({ element, visibility, turnawayBlockDisplay, teachingNotesDisplay }) { element.addEventListener('click', function () { const $tocScroll = $('#tocscroll'); const teachingNotesTurnawayBlock = document.querySelector('#teaching-notes-turnaway-block'); const turnawayBlock = document.querySelector('#turnaway-block'); if (elementExists($tocScroll.get(0))) { $tocScroll.css('visibility', visibility); } if (elementExists(turnawayBlock)) { turnawayBlock.style.display = turnawayBlockDisplay; } if (elementExists(teachingNotesTurnawayBlock)) { teachingNotesTurnawayBlock.style.display = teachingNotesDisplay; } }) } isReady(() => { const turnawayBlock = document.querySelector('#turnaway-block'); const cases = document.querySelector('#cases'); const teachingNotes = document.querySelector('#teaching-notes'); const teachingNotesTurnawayBlock = document.querySelector('#teaching-notes-turnaway-block'); const hash = window.location.hash.substr(1); if (hash === 'teaching-notes-tab') { if (elementExists(turnawayBlock)) { turnawayBlock.style.display = "none"; } if (elementExists(teachingNotesTurnawayBlock)) { teachingNotesTurnawayBlock.style.display = "block"; } } if (elementExists(cases)) { toggleTurnawayDisplay({ element: cases, visibility: 'visible', turnawayBlockDisplay: 'block', teachingNotesDisplay: 'none' }); } if (elementExists(teachingNotes)) { toggleTurnawayDisplay({ element: teachingNotes, visibility: 'hidden', turnawayBlockDisplay: 'none', teachingNotesDisplay: 'block' }); } }); window.addEventListener('load', (event) => { window.scrollTo(0, 0); }); </script> <script nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ=="> function trackingEnabled() { const isLockss = (navigator.userAgent === 'LOCKSS cache'); const shouldSkipTracking = (window.location.href.indexOf('skipTracking=true') > -1); return !isLockss && !shouldSkipTracking; }; </script> <script nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ=="> const mixPanelJson = {"URI":"\/content\/doi\/10.1108\/00214660880001220\/full\/html","Format":"HTML","Denied, Reason":"No License","Content ID \/ DOI":"10.1108\/00214660880001220","Content Title":"Portfolio effects and the willingness to pay for weather insurances","Parent Title":"Agricultural Finance Review","Year Of Publication":"2008","Publication Date":"5 May 2008","Access Method":"User","Access Type":"controlled","Parent Type":"journal","Print ISSN":"0002-1466","Parent ID \/ DOI":"10.1108\/afr","pISBN":"","eISBN":"","ISBN":"","Content Type":"article"}; const mixPanelCurrentPageEvent = 'Turnaway'; let teachingNotesAlreadyClicked = false; let caseStudyAlreadyClicked = false; let articleAlreadyClicked = false; function mixpanelTrack(eventName, mixPanelData) { storeOrPushMixpanelEvent('track', eventName, mixPanelData); mixpanelUpdateUserDataForEvent(eventName); } function trackTeachingNoteDownload() { if (teachingNotesAlreadyClicked) { return; } teachingNotesAlreadyClicked = true; const mixPanelData = JSON.parse(JSON.stringify(mixPanelJson)); mixPanelData['Content Type'] = 'Teaching Note'; mixpanelTrack(mixPanelCurrentPageEvent, mixPanelData); } function trackCaseStudyDownload() { if (caseStudyAlreadyClicked) { return; } caseStudyAlreadyClicked = true; const mixPanelData = JSON.parse(JSON.stringify(mixPanelJson)); mixPanelData['Content Type'] = 'case study'; mixpanelTrack(mixPanelCurrentPageEvent, mixPanelData); } function trackArticleDownload() { if (articleAlreadyClicked) { return; } articleAlreadyClicked = true; const mixPanelData = JSON.parse(JSON.stringify(mixPanelJson)); mixPanelData['Content Type'] = 'article'; mixpanelTrack(mixPanelCurrentPageEvent, mixPanelData); } function eventInterceptInit() { add_event_listener(window, 'click', 'a.clickIntercept', function () { const $this = $(this); switch($this.data("contentType")) { case 'Case Study': trackCaseStudyDownload(); break; case 'Teaching Note': trackTeachingNoteDownload(); break; case 'Article': trackArticleDownload(); break; default: const mixPanelData = JSON.parse(JSON.stringify(mixPanelJson)); const clickEventName = $this.data("eventName"); mixpanelTrack(clickEventName, mixPanelData); } }) } // Check if the tabs were already clicked on page land, if it was then track the relevant event function checkSelectedTabs() { const teachingNotes = document.querySelector('#teaching-notes') if (teachingNotes != null && teachingNotes.getAttribute('aria-selected') === 'true') { trackTeachingNoteDownload() return } const cases = document.querySelector('#cases') if (cases != null && cases.getAttribute('aria-selected') === 'true') { trackCaseStudyDownload() return } const articles = document.querySelector('#articles') if (articles != null && articles.getAttribute('aria-selected') === 'true') { trackArticleDownload() return } mixpanelTrack(mixPanelCurrentPageEvent, mixPanelJson) } (function(){ if (trackingEnabled()) { checkSelectedTabs(); eventInterceptInit(); }; })(); </script> <script nonce="vw/M1EJtfJm4SIes+W5PaCZGFTwAGtQUq/fcbk8QS9ZWpPve9CW6MVbxhTZeopQWzWf9HgCW2H9DE5IQs2sQjQ=="> var _ll = _ll || []; function pushToLL(event, data) { _ll.push([event, data]); } function buildUrl(path, params = {}) { const root = "/insight/"; const queryString = Object.keys(params) .map(key => `${encodeURIComponent(key)}=${encodeURIComponent(params[key])}`) .join('&'); return `${root}${path}?${queryString}`; } function counterTrack(endpoint) { pushToLL('setEndpoint', endpoint); pushToLL('setDefaults', {"pid":"0959a6c7150c5e64","plid":"Insight","plname":"Emerald Publishing Limited"}); let counterJson = {"tm":{"title":"Agricultural Finance Review","dt":"journal","issnp":"0002-1466","issno":"","doi":"10.1108\/afr"},"im":{"doi":"10.1108\/00214660880001220","title":"Portfolio effects and the willingness to pay for weather insurances","yop":"2008","pdate":"5 May 2008","dt":"article","stype":"article"},"aid":"00001","aname":"Guest User","sid":"4Zpr3Fim4dC89eTDKCQUzHjVRrWQACLjGxxwMRxG","uri":"\/content\/doi\/10.1108\/00214660880001220\/full\/html","fmt":"HTML","referrer":"","deny":"No_License","am":"regular","at":"controlled"}; return new Promise((resolve, reject) => { pushToLL('trackDenial', counterJson); // track turnaway abtract page as investigation pushToLL('trackItemInvestigation', counterJson); resolve(); // Resolve immediately if no API call is made }); } function counterLoadScript() { const d = document; const g = d.createElement('script'); const s = d.getElementsByTagName('script')[0]; const libLynxPrefixOne = "https://connect.lib"; const libLynxPrefixTwo = "lynx.com"; const libLynxSuffix = "/log/js/counter5.min.js"; const libLynxSrc = `${libLynxPrefixOne}${libLynxPrefixTwo}${libLynxSuffix}`; g.type = 'text/javascript'; g.async = true; g.id = 'counter_script'; g.defer = true; g.src = libLynxSrc; s.parentNode.insertBefore(g, s); } function counterGetEndpoint() { const baseUrlOne = "https://connect.lib".replace('https:','').replace('http:',''); const baseUrlTwo = "lynx.com"; return baseUrlOne + baseUrlTwo + "/log/counter"; } document_ready(async () => { if (trackingEnabled()) { await counterTrack(counterGetEndpoint()); counterLoadScript(); } }); </script> </body> </html>

CINXE.COM

Portfolio effects and the willingness to pay for weather insurances | Emerald Insight