Managing Economic Risk from Invasive Species: Bug Options

Invasive insect species cause billions of dollars of direct and indirect damage to U.S. crops each year. The market for insuring insect damage is, however, far from complete. The objective of this study is to design and value insect derivatives, or "bug options," which would offer growers a market-based means for transferring risk of pest damage to speculators or others who may profit from higher insect populations. A bug option valuation model is developed and applied to Bemesia tabaci infestation in cotton. The results show that insect derivatives may become important risk management tools for a wide range of growers.


Issue Date:
2005
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/19553
PURL Identifier:
http://purl.umn.edu/19553
Total Pages:
24
Series Statement:
Selected Paper 136684




 Record created 2017-04-01, last modified 2020-10-28

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