Experiencing natural disasters: how this influences risk aversion, trust and the demand for microinsurance
Authors: Oliver Fiala
Abstract: Climate change is likely to increase extreme weather events, their frequency and intensity. Especially developing countries are more vulnerable to the increasing likelihood of natural disasters. Insurance is one risk management tool, which removes or reduces the financial risk arising from natural hazards. Even if microinsurance in general appears to be a promising tool to protect vulnerable populations, the overall enrolment rates remain low.
This paper is supposed to investigate the link between natural disasters, individual behaviour particularly risk aversion and trust – and the demand for microinsurance products. For that a field experiment with a trust game and a risk game to measure personal risk aversion have been performed with populations in rural areas of Cambodia’s Battambang province. In addi-tional a survey in combination with a discrete choice experiment has been conducted.”
Defining and Modelling Resilience along the Food Supply Chain
Authors: Jamie Stone, Elliot Woolley, Shahin Rahimifard
Abstract: Food supply chains face a number of unique vulnerabilities compared to other supply chains and there is concern that, as operating environment volatility increases, current “lean” supply chain management strategies may no longer be fit for purpose. There is a need to manage food supply chains in such a way that a return to the original state, or preferably an improved state, after being disturbed is possible. However, whilst the literature reveals a relatively large amount of work on resilience in supply chain management, there is poor consensus over how to define and implement a system of resiliences. In response, this paper explores the current complexity of food supply chains, highlighting key dependencies, failure modes and key performance indicators. It then examines the interdependencies between capabilities and vulnerabilities in allowing balanced resilience and presents a framework to bring together and aid understanding of these factors across food supply chains.
Measuring resilience and vulnerability of SMEs to climate-related events: Evidence on why they need to go hand by hand
Authors: Paola Sakai, Andy Gouldson
Abstract: SMEs play a crucial role in the economic system. If their existence was to become affected by climate-related impacts, social and economic development could be compromised. The objective of this paper is to investigate to what extent SMEs are vulnerable or resilient to climate change. Moreover, it examines the relationship between the concepts of vulnerability and resilience. These conceptualisations were operationalised with a number of variables, which were used to construct two indices, one for vulnerability and another for resilience. The analysis reveals that these two concepts are not simply opposite sides of a coin. This paper argues that an organisation that possesses coping capacities and resilient traits has the potential to manage climate events and incorporate these experiences by learning, adapting and renewing. This has important implications, since the efforts to reduce vulnerability and enhance resilience need to go hand by hand in order to promote change and transformation.
Building resilience to climate change in agriculture: the role of robust appraisal methods
Authors: Ruth Dittrich, Anita Wreford
Abstract: Research can support farmers to enlarge their portfolio of adaptation options to climate change. We focus on appraising adaptation options to climate change, helping to decide to which extent measures should be implemented. We conclude that a large part of measures in the agriculture will be reactive, as many management decisions are made over short decision horizons. Appraisal can occur through standard cost-benefit analysis. Anticipatory adaptation, implementing adaptation options before the climate change occurs is needed for capital-intensive investments with a long lifetime. However, the uncertainty about climate change impacts make appraisals challenging. For anticipatory adaptation measures, we therefore suggest the use of ‘robust decision-making methods’ for appraisal. Robust approaches deliver adaptation goals by selecting projects that meet their purpose across a variety of futures and are thus particularly suited for uncertainty. We provide concrete examples on how these could be accomplished technically as guidance to decision-makers in the agriculture.