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Managing Dairy Profit Risk Using Weather Derivatives AgEcon
Chen, Gang; Roberts, Matthew C.; Thraen, Cameron S..
Weather conditions are a primary source of dairy production risk. Hot and humid weather induces heat stress, which reduces lactation. Heat abatement, such as ventilation, directly affects the temperature and humidity. Abatement can increase expected profit, but cannot eliminate the lost revenue caused by heat stress. Weather derivatives can reduce weather-induced profit risk and act as a substitute for abatement at the margin. We test the risk management value of weather derivatives in a utility-maximization framework. The result is that weather derivatives can expand the efficient portfolio frontier. Simultaneously using the weather derivatives and abatement equipment is more favorable than using either alone.
Tipo: Journal Article Palavras-chave: Abatement technology; Mean-variance efficiency; Profit risk; Weather derivatives; Livestock Production/Industries; Risk and Uncertainty.
Ano: 2006 URL: http://purl.umn.edu/8624
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Effectiveness of Nitrate Policy in Flanders (1990-2003): Modular Modelling and Response Analysis AgEcon
Veraet, Mieke; Lauwers, Ludwig H.; Lenders, Sonia; Overloop, Stijn.
The impact of current nitrate policy measures in Flanders is estimated. A modular modelling system has been developed for comparing response and pressure indicators and for decomposing the response impact of policy measures. Compared to 1990, the internalised manure surplus is reduced to zero, whereas the distance to target of the soil surface balance to the water quality standard dropped only with 58%. Source-linked and sink-related measures each account for about the half of the manure surplus reduction. The impact of abatement technologies is minor. The modular approach helps to unravel the discrepancy between pressure and response and to propose policy alternatives.
Tipo: Conference Paper or Presentation Palavras-chave: Abatement technology; DPSIR scheme; Nitrogen pollution reduction; Agricultural and Food Policy; B41; C51; H21; K32.
Ano: 2005 URL: http://purl.umn.edu/24450
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