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Insure or Invest in Green Technologies to Protect Against Adverse Weather Events? AgEcon
Pietola, Kyosti; Myyra, Sami; Niemi, Jarkko K.; Van Asseldonk, Marcel A.P.M..
This paper analyses investments in green technologies when insurance is also an option. Green technologies are defined to have the power to increase productivity and decrease volatility of future revenues. The insurance options involve the scale and coverage either in a yield insurance or in an index insurance. The stochastic process is a combination of insurable stationary short-run process and non-stationary long run process. The optimal decision rules are solved numerically by stochastic dynamic programming. The results suggest that the index insurance maintains market based incentives to invest in green technologies whereas a yield insurance substantially decreases investments, as expected. An actuarially fair yield insurance decreases investments at...
Tipo: Working or Discussion Paper Palavras-chave: Investment; Insurance; Uncertainty; Dynamic programming; Green technology; Agribusiness; Agricultural Finance; Financial Economics; Risk and Uncertainty.
Ano: 2011 URL: http://purl.umn.edu/100738
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Green Technologies for a More Sustainable Agriculture AgEcon
Hrubovcak, James; Vasavada, Utpal; Aldy, Joseph E..
For U.S. agriculture to continue along a sustainable path of economic development, further production increases must be generated by technologies that are both profitable and more environmentally benign. In this context, we assess the role of these green or sustainable technologies in steering agriculture along a more sustainable path. However, the lack of markets for the environmental attributes associated with green technologies can limit their development. In addition, simply making a technology available does not mean it will be adopted. Experience with green technologies such as conservation tillage, integrated pest management, enhanced nutrient management, and precision agriculture demonstrates that even when technologies are profitable, barriers to...
Tipo: Report Palavras-chave: Sustainable agriculture; Natural capital; Nonrenewable resources; Renewable resources; Environmental services; Green technology; Integrated pest management; Conservation tillage; Enhanced nutrient management; Precision agriculture; Environmental Economics and Policy; Farm Management.
Ano: 1999 URL: http://purl.umn.edu/33721
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