IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-03794748.html

Insurance and forest rotation decisions under storm risk

Author

Listed:
  • Patrice Loisel

    (MISTEA - Mathématiques, Informatique et STatistique pour l'Environnement et l'Agronomie - INRA - Institut National de la Recherche Agronomique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier)

  • Marielle Brunette

    (BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique)

  • Stéphane Couture

    (MIAT INRAE - Unité de Mathématiques et Informatique Appliquées de Toulouse - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

Forests are often threatened by storms; and such a threat is likely to rise due to climate change. Using private forest insurance as a vehicle to fund resilience and adaptation emerge as a policy recommendation. Hence the forest owners would have the possibility to consider insurance when defining their forest management practices. In this context, we analyze the impact of the forest owner’s insurance decision on forest management under storm risk. We extend the Faustmann optimal rotation model under risk, first, considering the forest owner’s risk preferences, and second, integrating the decision of insurance. With this analytical model, we show that as the insurance coverage increases, the rotation length increases independently of the forest owner’s risk aversion. In addition, we identify some cases where it may be optimal for the forest owner to not adopt insurance contract. Finally, we prove that a public transfer, reducing the insurance premium, may encourage the forest owner to insure.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Patrice Loisel & Marielle Brunette & Stéphane Couture, 2019. "Insurance and forest rotation decisions under storm risk," Post-Print hal-03794748, HAL.
    • Handle: RePEc:hal:journl:hal-03794748
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    Other versions of this item:

    Citations

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


    Cited by:

    1. is not listed on IDEAS
    2. Yafei Wang & Marielle Brunette & Fanny Claise, 2025. "Heterogeneity of demand for forestry insurance: Explanations based on a comparison between France and China," Working Papers of BETA 2025-14, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    3. Bastit, Félix & Brunette, Marielle & Montagné-Huck, Claire, 2023. "Pests, wind and fire: A multi-hazard risk review for natural disturbances in forests," Ecological Economics, Elsevier, vol. 205(C).
    4. Salimova, Guzel & Ableeva, Alisa & Lubova, Tatiana & Sharafutdinov, Aidar & Araslanbaev, Irek, 2022. "Multidimensional modeling of the economy of forest management and reforestation," Ecological Modelling, Elsevier, vol. 472(C).

    More about this item

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry

    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:hal:journl:hal-03794748. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.