Impacts and synergies of weather index insurance and microcredit in rural areas: a systematic review

Abstract Weather constitutes a major source of risks facing households in rural areas, which are being amplified under climate change. In this context, two main financial services, weather index insurance and microcredit, have been increasingly adopted by farmers worldwide. However, the understanding socioeconomic ecological impacts these finance schemes, including potential maladaptive outcomes, remains ambiguous. We review recent literature on microcredit for find that both services positive economic impacts, though benefits to poorest populations remain controversial. Moreover, their systems less studied found be mainly negative. addition, considering instruments strengths limitations, we argue combination schemes (e.g. hybrid product) may generate synergistic effects building resilience agricultural regions. also add new risk local institutions. This comprehensive provides reference innovations. Further studies ecosystem contexts needed fill current research gap.