Table 2 Results RQ1: Tests for Risk reducing Properties of different WII compared to ‘no insurance’ Reference Scenario.

From: Phenology Information Contributes to Reduce Temporal Basis Risk in Agricultural Weather Index Insurance

Coefficient of relative risk aversion α

Yearly Reporter

Immediate Reporter

GDD…

H0:EUyear ≥ EUnoins

H0:EUimm ≥ EUnoins

H0:EUGDD ≥ EUnoins

p- value

0 (risk neutral)

0.62

0.29

0.93

0.5

3.48·10−2

6.31·10−2

0.84

1

2.51·10−2

7.49·10−3

0.64

2

6.73·10−3

9.93·10−3

0.60

3

5.72·10−3

1.42·10−2

0.51

4 (extremely risk averse)

5.28·10−3

1.31·10−2

0.53

  1. EUyear: Vector of expected utility values of insured farmers using yearly phenology reporters’ data.
  2. EUimm: Vector of expected utility values of insured farmers using immediate phenology reporters’ data.
  3. EUGDD: Vector of expected utility values of insured farmers using growing degree days modeling.
  4. EUnoins: Vector of expected utility values of uninsured farmers.
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