Olive oil yields fluctuate strongly due to their dependence on sufficient precipitation. An interesting option to hedge the yield risk in olive cultivation could be satellite‐based weather index insurance. Therefore, we implement index insurance as a hedging alternative for non‐irrigated olive groves using MODerate‐resolution Imaging Spectroradiometer (MODIS) satellite data. For this purpose, we focus on the Spanish region of Andalusia, given its importance in olive production at the international level. We calculate three satellite indices: the Vegetation Condition Index (VCI), the Temperature Condition Index (TCI) and the Vegetation Health Index (VHI). Meteorological indices related to temperature and precipitation are used as benchmarks. Firstly, we estimate the periods that have the greatest influence on the critical vegetative phase of olives, which extends from March to September. Based on the indices, insurance contracts are designed using a copula approach, which is then employed to evaluate their hedging effectiveness. On average, the hedging effectiveness of VCI‐, VHI‐ and TCI‐based weather index insurance contracts amounts to 38 per cent, 38 per cent and 29 per cent, respectively. Moreover, VCI‐ and VHI‐based weather index insurance contracts outperform traditional weather index insurance contracts based on precipitation (by 29 per cent) and temperature (by 16 per cent) indices.

中文翻译：

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基于卫星的天气指数保险能否改善西班牙多年生非灌溉橄榄树的产量风险对冲？*

橄榄油的产量因其对充足降水的依赖而剧烈波动。对冲橄榄种植单产风险的一个有趣选择是基于卫星的天气指数保险。因此，我们使用MODerate分辨率成像光谱仪（MODIS）卫星数据，将指数保险作为非灌溉橄榄树的对冲替代方案。为此，鉴于安达卢西亚在国际上橄榄生产中的重要性，我们将重点放在西班牙安达卢西亚地区。我们计算了三个卫星指数：植被状况指数（VCI），温度状况指数（TCI）和植被健康指数（VHI）。与温度和降水有关的气象指标被用作基准。首先，我们估算对橄榄的关键营养期影响最大的时期，从三月到九月。基于这些指数，保险合同的设计采用了copula方法，然后用于评估其对冲有效性。平均而言，基于VCI，VHI和TCI的天气指数保险合同的对冲有效性分别为38％，38％和29％。此外，基于VCI和VHI的天气指数保险合同的表现优于传统的基于降水（29％）和温度（16％）指数的天气指数保险合同。分别为38％和29％。此外，基于VCI和VHI的天气指数保险合同的表现优于传统的基于降水（29％）和温度（16％）指数的天气指数保险合同。分别为38％和29％。此外，基于VCI和VHI的天气指数保险合同的表现优于传统的基于降水（29％）和温度（16％）指数的天气指数保险合同。