Cost-benefit analysis of the african risk capacity facility

The African Risk Capacity (ARC) pool is a proposed pan-Africa drought risk pool that would insure against drought risk in Africa south of the Sahara. Donors and, to at least a notional extent, member countries would pay annual premiums.

This paper analyzes the demand for rainfall-based weather hedges among farmers in rural India.

Farmers in rural Bangladesh face multiple sources of uninsured risk to agricultural production and household assets.

An initial cost-benefit analysis (CBA) of the African Risk Capacity (ARC), published in 2013, showed that regional risk pooling for severe droughts could increase benefits to poor households by as much as US$ 1.90 per dollar invested, due to the speed, cost