Designing Weather Index Insurance for Rice Production to Cope with Climate Change in Northeastern Thailand
DOI:
https://doi.org/10.55164/ecbajournal.v17i3.274150Keywords:
Weather Index Insurance, Climate Change, Risk Reduction, Rice Production, ThailandAbstract
This research aims to design weather index insurance (WII) schemes and to analyze risk reduction performance of weather index insurance to cope with future climate change for rice production in Thailand. The econometric methods and panel data were conducted to analyze the impacts of climate change, which will give precise analysis results for designing WII systems for rice production. The design of the WII is based on the average temperature index in 2021. A case study for the northeastern region found that the WII was effective in reducing income risk by 2.39 percent. In the case of rainfall, it could reduce income risk by 6.65 percent. For future climate change, the WII on temperature index effectively reduced income risk by 8.01 percent, 10.59 percent, and 11.98 percent; the rainfall index was effective at 9.55 percent, 7.59 percent, and 7.02 percent in 2030, 2040, and 2050, respectively. These index-based insurance system reviews that are to be considered are: WII design, WII pricing, weather measurement, ease of use of insurance, and perception and public relations. The readiness and limitations of developing WII systems continue to be challenges, and public-private partnerships are required for efficiency driving of WII to cope with future climate change.
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