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Effects of Private Insurance on Forest Landowners' Incentives to Sequester and Trade Carbon under Uncertainty: Impact of Hurricanes

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Author Info
Grover, Mansi
Bosch, Darrell J.
Preisley, Stephen P.
Abstract

We evaluate incentives of forest landowners for sequestering and trading carbon, given the risk of carbon loss from hurricanes, and an opportunity to insure their losses. Results of simulation model reveal that the effect of hurricane risk depends on the variability of returns from carbon and timber and landowners' ability to mitigate risk by diversifying forest holdings across regions or transferring risk by purchasing insurance.

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Publisher Info
Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19516.

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Date of creation: 2005
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Handle: RePEc:ags:aaea05:19516

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Related research
Keywords: Carbon Sequestration; Emissions Trading; Natural Disaster; Risk; Insurance; Risk and Uncertainty; Q54; Q58;

References listed on IDEAS
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  1. Prestemon, Jeffrey P & Holmes, Thomas P, 2000. " Timber Price Dynamics Following a Natural Catastrophe," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(1), pages 145-60, February. [Downloadable!] (restricted)
  2. Barnett, Barry J. & Coble, Keith H., 1999. "Understanding Crop Insurance Principles: A Primer For Farm Leaders," Research reports 15784, Mississippi State University, Department of Agricultural Economics. [Downloadable!]
  3. Sheldon M Cohen, 2002. "Carbon-Based Conservation Strategies in Latin America: An Innovative Tool for Financing Environmental Conservation," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan Journals, vol. 27(2), pages 255-267, April. [Downloadable!] (restricted)
  4. Duncan, John & Myers, Robert J, 2000. " Crop Insurance under Catastrophic Risk," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(4), pages 842-55, November. [Downloadable!] (restricted)
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This page was last updated on 2009-12-11.


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