| According to the Taiwan Council of Agriculture, frost was responsible for approximately 30 percent of aquaculture losses in Taiwan during the period 1999-2008. Farmed milkfish, the most important aquaculture crop in Taiwan, is particularly sensitive to temperature variations, and can experience widespread kills whenever temperatures fall below 14°C for sustained periods of time. Temperatures below this critical minimum, however, are not uncommon during the January-March winter months. The purpose of our study is to analyze the possible benefits and the actuarial properties of temperature-based index insurance for the farmed milkfish industry in Kaohsiung County, Taiwan. Weather-based index insurance has been promoted as a cost-effective means of... |
