IDEAS home Printed from https://ideas.repec.org/a/eee/forpol/v61y2015icp30-38.html
   My bibliography  Save this article

Store or export? An economic evaluation of financial compensation to forest sector after windstorm. The case of Hurricane Klaus

Author

Listed:
  • Caurla, Sylvain
  • Garcia, Serge
  • Niedzwiedz, Alexandra

Abstract

We assess the economic impacts of the compensation plan implemented in the forest sector after Klaus hurricane in the south-west of France in 2009. We model this plan within the French Forest Sector Model (bio-economic partial equilibrium model), and we compare it with alternative plans assuming alternative distributions between transport and storage subsidies. Our results show that the plan as it was formulated was globally beneficial to the forest sector compared with a scenario without a plan. In addition, we show that, compared with the formulated plan, a storage-oriented alternative plan reduces the fall in price observed after the hurricane, increases storage volume, increases the total gains in surplus of the overall sector but postpones the price rebound after the shock. This is a policy-relevant result in such a context where one major risk is that windfall wood prices drop to zero.

Suggested Citation

  • Caurla, Sylvain & Garcia, Serge & Niedzwiedz, Alexandra, 2015. "Store or export? An economic evaluation of financial compensation to forest sector after windstorm. The case of Hurricane Klaus," Forest Policy and Economics, Elsevier, vol. 61(C), pages 30-38.
    • Handle: RePEc:eee:forpol:v:61:y:2015:i:c:p:30-38
    DOI: 10.1016/j.forpol.2015.06.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1389934115300174
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.forpol.2015.06.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Alexandre Sauquet & Ahmed Barkaoui & Sylvain Caurla & Philippe Delacote & Serge Garcia & Franck Lecocq, 2011. "Estimating Armington elasticities for sawnwood and application to the French Forest Sector Model," Post-Print halshs-00688822, HAL.
    2. Sauquet, Alexandre & Lecocq, Franck & Delacote, Philippe & Caurla, Sylvain & Barkaoui, Ahmed & Garcia, Serge, 2011. "Estimating Armington elasticities for sawnwood and application to the French Forest Sector Model," Resource and Energy Economics, Elsevier, vol. 33(4), pages 771-781.
    3. Brunette, Marielle & Couture, Stéphane, 2008. "Public compensation for windstorm damage reduces incentives for risk management investments," Forest Policy and Economics, Elsevier, vol. 10(7-8), pages 491-499, October.
    4. Howard Kunreuther & Mark Pauly, 2006. "Rules rather than discretion: Lessons from Hurricane Katrina," Journal of Risk and Uncertainty, Springer, vol. 33(1), pages 101-116, September.
    5. Howard Kunreuther & Mark Pauly, 2006. "Rules Rather Than Discretion: Lessons from Hurricane Katrina," NBER Working Papers 12503, National Bureau of Economic Research, Inc.
    6. Kaplow, Louis, 1991. "Incentives and Government Relief for Risk," Journal of Risk and Uncertainty, Springer, vol. 4(2), pages 167-175, April.
    7. Sylvain Caurla & Franck Lecocq & Philippe Delacote & Ahmed Barkaoui, 2010. "The French Forest Sector Model: version 1.0. Presentation and theorical foundations," Working Papers - Cahiers du LEF 2010-04, Laboratoire d'Economie Forestiere, AgroParisTech-INRA.
    8. Costa, Sandrine & Ibanez, Lisette, 2005. "Can wood storage be profitable? French experience after the windstorms in 1999," Journal of Forest Economics, Elsevier, vol. 11(3), pages 161-176, December.
    9. Holecy, Jan & Hanewinkel, Marc, 2006. "A forest management risk insurance model and its application to coniferous stands in southwest Germany," Forest Policy and Economics, Elsevier, vol. 8(2), pages 161-174, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Miguel Riviere & Sylvain Caurla & Philippe Delacote, 2020. "Evolving Integrated Models From Narrower Economic Tools : the Example of Forest Sector Models," Post-Print hal-02512330, HAL.
    2. Marielle Brunette & Marc Hanewinkel, 2021. "Assurance financière et assurance naturelle : une application à la forêt," Working Papers of BETA 2021-28, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    3. Jun Zhai & Zhuo Ning, 2022. "Models for the Economic Impacts of Forest Disturbances: A Systematic Review," Land, MDPI, vol. 11(9), pages 1-16, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marielle Brunette & Laure Cabantous & Stéphane Couture & Anne Stenger, 2009. "Assurance, intervention publique et ambiguïté : une étude expérimentale auprès de propriétaires forestiers privés," Économie et Prévision, Programme National Persée, vol. 190(4), pages 123-134.
    2. Brunette, Marielle & Couture, Stéphane, 2008. "Public compensation for windstorm damage reduces incentives for risk management investments," Forest Policy and Economics, Elsevier, vol. 10(7-8), pages 491-499, October.
    3. Marielle Brunette & Stephane Couture, 2007. "Effects of Public Compensation for Disaster Damages on Private Insurance and Forest Management Decisions," Working Papers - Cahiers du LEF 2007-06, Laboratoire d'Economie Forestiere, AgroParisTech-INRA.
    4. Marielle Brunette & Laure Cabantous & Stéphane Couture & Anne Stenger, 2008. "Insurance Demand for Disaster-type Risks and the Separation of Attitudes toward Risk and Ambiguity: an Experimental Study," Working Papers - Cahiers du LEF 2008-05, Laboratoire d'Economie Forestiere, AgroParisTech-INRA.
    5. Caurla, Sylvain & Bertrand, Vincent & Delacote, Philippe & Le Cadre, Elodie, 2018. "Heat or power: How to increase the use of energy wood at the lowest cost?," Energy Economics, Elsevier, vol. 75(C), pages 85-103.
    6. Lobianco, Antonello & Caurla, Sylvain & Delacote, Philippe & Barkaoui, Ahmed, 2016. "Carbon mitigation potential of the French forest sector under threat of combined physical and market impacts due to climate change," Journal of Forest Economics, Elsevier, vol. 23(C), pages 4-26.
    7. Lobianco, Antonello & Delacote, Philippe & Caurla, Sylvain & Barkaoui, Ahmed, 2015. "The importance of introducing spatial heterogeneity in bio-economic forest models: Insights gleaned from FFSM++," Ecological Modelling, Elsevier, vol. 309, pages 82-92.
    8. Etienne Lorang & Antonello Lobianco & Philippe Delacote, 2021. "Sectoral, resource and carbon impacts of increased paper and cardboard recycling," Working Papers 2021.12, FAERE - French Association of Environmental and Resource Economists.
    9. Craig E. Landry & Dylan Turner & Daniel Petrolia, 2021. "Flood Insurance Market Penetration and Expectations of Disaster Assistance," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(2), pages 357-386, June.
    10. W. J. W. Botzen & J. C. J. M. Van Den Bergh, 2008. "Insurance Against Climate Change and Flooding in the Netherlands: Present, Future, and Comparison with Other Countries," Risk Analysis, John Wiley & Sons, vol. 28(2), pages 413-426, April.
    11. Ahmed Tauqeer Zahid & Farooq AhmadKhan, 2017. "Cost Mitigation of Natural Disasters through Insurance," Indian Journal of Commerce and Management Studies, Educational Research Multimedia & Publications,India, vol. 8(3), pages 16-25, September.
    12. Caurla, Sylvain & Delacote, Philippe & Lecocq, Franck & Barkaoui, Ahmed, 2013. "Stimulating fuelwood consumption through public policies: An assessment of economic and resource impacts based on the French Forest Sector Model," Energy Policy, Elsevier, vol. 63(C), pages 338-347.
    13. Jason Scott Johnston, 2012. "Disasters and Decentralisation," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 37(2), pages 228-256, April.
    14. Botzen, W.J.W. & Aerts, J.C.J.H. & van den Bergh, J.C.J.M., 2009. "Willingness of homeowners to mitigate climate risk through insurance," Ecological Economics, Elsevier, vol. 68(8-9), pages 2265-2277, June.
    15. James M. Carson & Kathleen A. McCullough & David M. Pooser, 2013. "Deciding Whether to Invest in Mitigation Measures: Evidence From Florida," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 80(2), pages 309-327, June.
    16. Mario Jametti & Thomas von Ungern-Sternberg, 2009. "Hurricane Insurance in Florida," Quaderni della facoltà di Scienze economiche dell'Università di Lugano 0905, USI Università della Svizzera italiana.
    17. Wang, Chunhua, 2014. "Regulating land development in a natural disaster-prone area: The roles of building codes," Resource and Energy Economics, Elsevier, vol. 36(1), pages 209-228.
    18. Dai, Yongwu & Chang, Hung-Hao & Liu, Weiping, 2015. "Do forest producers benefit from the forest disaster insurance program? Empirical evidence in Fujian Province of China," Forest Policy and Economics, Elsevier, vol. 50(C), pages 127-133.
    19. Osberghaus, Daniel & Reif, Christiane, 2021. "How do different compensation schemes and loss experience affect insurance decisions? Experimental evidence from two independent and heterogeneous samples," Ecological Economics, Elsevier, vol. 187(C).
    20. Brunette, M. & Holecy, J. & Sedliak, M. & Tucek, J. & Hanewinkel, M., 2015. "An actuarial model of forest insurance against multiple natural hazards in fir (Abies Alba Mill.) stands in Slovakia," Forest Policy and Economics, Elsevier, vol. 55(C), pages 46-57.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:forpol:v:61:y:2015:i:c:p:30-38. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/forpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.