Water deficit as index for agricultural insurance in Southeastern Brazil

This dataset represent results from research made by member of the Water-Adaptive Design and Innovation Laboratory (WADI-LAB) from the Hydraulic and Sanitation department of the São Carlos School of Engineering - University of São Paulo Brazil.

Hypothesis: index insurance is a tool to mitigate the impacts of climate change on agriculture safeguarding long-term income for farmers.

Methodological procedure:
1. Collect observed montlhy streamflows (Reference: Sabesp)
2. Calculate loss and index relationship Loss = m [USD/m³] which is the price of water for agriculture.
3. Generate 200 sets of fity year-long monthly synthetic series using the method of fragments.
4. Calculate annual deficit in m³ using two thresholds: 98% and 99% of exceedance curve.
5. Estimate losses Water deficit [m³] x Loss [USD/m³]
6. Optimize premiums based on present value equation.
7. Insurance fund evaluation

References:
Guzmán, D. A., Mohor, G. S., and Mendiondo, E. M. (2020). “Multi-year index-based insurance for adapting water utility companies to hydrological drought: Case study of a water supply system of the sao paulo metropolitan region, brazil.” Water (Switzerland), 12(11), 1–22.

Mohor, G. S., and Mendiondo, E. M. (2017). “Economic indicators of hydrologic drought insurance under water demand and climate change scenarios in a Brazilian context.” Ecological Economics, Elsevier, 140, 66–78.

Righetto, A., Mendiondo, E., and Righetto, J. (2007). “Modelo de Seguro para Riscos Hidrológicos.” Revista Brasileira de Recursos Hídricos, FapUNIFESP (SciELO), 12(2), 107–113.