IDEAS home Printed from https://ideas.repec.org/a/oup/ajagec/v96y2014i1p213-231..html
   My bibliography  Save this article

Is Timber Insurable? A Study of Wildfire Risks in the U.S. Forest Sector Using Spatio-temporal Models

Author

Listed:
  • Xuan Chen
  • Barry K. Goodwin
  • Jeffrey P. Prestemon

Abstract

In the U.S. forest products industry, wildfire is one of the leading causes of damage and economic losses. While individual wildfire behavior is well studied, new literature is emerging on broad-scale (e.g., county-level) wildfire risks. Our paper studies wildfire risks using crucial informational variables across both spatial units and time periods. Several statistical models are used to quantify the risks. We develop several maximum likelihood estimation methods to account for spatio-temporal auto-correlation in conditional risks. A group index insurance scheme is proposed, and its associated actuarially fair premium rates are estimated and presented. Implications for wildfire management policies are also discussed.

Suggested Citation

  • Xuan Chen & Barry K. Goodwin & Jeffrey P. Prestemon, 2014. "Is Timber Insurable? A Study of Wildfire Risks in the U.S. Forest Sector Using Spatio-temporal Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(1), pages 213-231.
    • Handle: RePEc:oup:ajagec:v:96:y:2014:i:1:p:213-231.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/ajae/aat087
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

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

    Citations

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


    Cited by:

    1. Feng, Xin & Dai, Yongwu, 2019. "An innovative type of forest insurance in China based on the robust approach," Forest Policy and Economics, Elsevier, vol. 104(C), pages 23-32.
    2. Cary, Michael A. & Frey, Gregory E., 2020. "Alley cropping as an alternative under changing climate and risk scenarios: A Monte-Carlo simulation approach," Agricultural Systems, Elsevier, vol. 185(C).
    3. Yiling Deng & Ian A. Munn & Haibo Yao, 2021. "Attributes‐based conjoint analysis of landowner preferences for standing timber insurance," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 24(4), pages 421-444, December.
    4. Sauter, Philipp A. & Möllmann, Torsten B. & Anastassiadis, Friederike & Mußhoff, Oliver & Möhring, Bernhard, 2016. "To insure or not to insure? Analysis of foresters' willingness-to-pay for fire and storm insurance," Forest Policy and Economics, Elsevier, vol. 73(C), pages 78-89.

    More about this item

    Statistics

    Access and download statistics

    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:oup:ajagec:v:96:y:2014:i:1:p:213-231.. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    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.