Adaptation as risk management Flashcards
1
Q
What is the main feauture of diversification and how can farmers use this strategy?
A
Diversification is placing the risk on several urns instead of just one.
Farmers can diversify crops to minimize survival risks
2
Q
Calculate the expected value of L1 and L2 Which one exposes to less risk?
A
3
Q
Like for COVID, there could be sudden triggers of disruptions from climate change that can bring destabilization of the financial system, food supply, political regime, or/and mental health. How do we tackle this?
A
Although at the moment it is unlikely, we should consider it in order to avoid it and to have a plan in case it happens
