Post by Nicolas Alou

🔔📄 New paper out!   Our paper "Coping With Production Risk: Effects of Sown Plant Diversity on the Attractiveness of Crop Insurance in Grasslands", co-authored with Sergei Schaub, Martin Quaas, and Robert Finger, is now online! 🌱🛡️🏦   🔍 In this paper, we examine how sown plant diversity (natural insurance) influences the attractiveness of indemnity and drought index insurance (formal insurance) in grassland systems across Europe.   📊 Key finding: Farmers who sow lower plant diversity show a lower willingness to pay for indemnity insurance, suggesting adverse selection. In contrast, drought index insurance remains equally attractive regardless of diversity level. These effects hold across different insurance designs and risk preferences, and offer valuable insights for farmers, insurers, and policymakers alike.   🔗 Read the full paper here: https://lnkd.in/ePX2QehR