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Forest Insurance for Natural Events: An Overview by Economists

Author

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  • Marielle Brunette

    (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CEC - Chaire Economie du Climat - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres)

  • 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

Forest insurance exists for more than a century in lots of countries around the world. Currently, it is put forward as a recommended tool to finance resilience and adaptation towards climate change. However, little synthetic knowledge exists on forest insurance, although this seems to be a prerequisite for using insurance as an adaptation tool. This article aims at providing an overview of the current economics literature on the topic of forest insurance. More precisely, the objectives of this study are to carry out a review of the literature on this topic, to produce a bibliometric overview of knowledge on this issue, and thus to highlight scientific fronts. For that purpose, we propose a literature review. We collected 38 articles published in English between 1928 and 2021. We provide the following bibliometric information: journals, evolution over time of the publications, authors and co-citations network and analysis of the keywords. We also propose to synthesize the methods used, the various issues of interest, the risks considered and the countries where the studies were conducted. We show that an article on forest insurance has a high probability of being recent (after 2000) and of being published in the journal Forest Policy and Economics. In addition, it is highly probable that it will identify some determinants of insurance demand and that it will deal with fire risk in the U.S. or storm risk in Europe. Noting a small scientific community and a low number of publications, we identified seven fronts of science related to methods and data, new risks and uncertainties, public policies and forest insurance, and openness and the international dimension.

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  • Marielle Brunette & Stéphane Couture, 2023. "Forest Insurance for Natural Events: An Overview by Economists," Post-Print hal-03998602, HAL.
    • Handle: RePEc:hal:journl:hal-03998602
    DOI: 10.3390/f14020289
    Note: View the original document on HAL open archive server: https://hal.univ-lorraine.fr/hal-03998602v1
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    References listed on IDEAS

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    1. Paavola, Jouni & Primmer, Eeva, 2019. "Governing the Provision of Insurance Value From Ecosystems," Ecological Economics, Elsevier, vol. 164(C), pages 1-1.
    2. 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.
    3. Marielle Brunette & Robin Bourke & Marc Hanewinkel & Rasoul Yousefpour, 2018. "Adaptation to climate change in forestry: a multiple correspondence analysis (MCA)," Post-Print hal-02620990, HAL.
    4. 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.
    5. Montagné-Huck, Claire & Brunette, Marielle, 2018. "Economic analysis of natural forest disturbances: A century of research," Journal of Forest Economics, Elsevier, vol. 32(C), pages 42-71.
    6. Marielle Brunette & Laure Cabantous & Stéphane Couture & Anne Stenger, 2013. "The impact of governmental assistance on insurance demand under ambiguity: a theoretical model and an experimental test," Theory and Decision, Springer, vol. 75(2), pages 153-174, August.
    7. Barreal, Jesús & Loureiro, Maria L. & Picos, Juan, 2014. "On insurance as a tool for securing forest restoration after wildfires," Forest Policy and Economics, Elsevier, vol. 42(C), pages 15-23.
    8. 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.
    9. Claire Montagné-Huck & Marielle Brunette, 2018. "A Bibliographic Database on Economic Analysis of Natural Forest Disturbances," Post-Print hal-02091626, HAL.
    10. Félix Bastit & Marielle Brunette & Claire Montagné-Huck, 2023. "Pests, wind and fire: A multi-hazard risk review for natural disturbances in forests," Post-Print hal-03998584, HAL.
    11. 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).
    12. Subhrendu K. Pattanayak & Erin O. Sills, 2001. "Do Tropical Forests Provide Natural Insurance? The Microeconomics of Non-Timber Forest Product Collection in the Brazilian Amazon," Land Economics, University of Wisconsin Press, vol. 77(4), pages 595-612.
    13. Paul Raschky & Hannelore Weck-Hannemann, 2007. "Charity hazard - A real hazard to natural disaster insurance," Working Papers 2007-04, Faculty of Economics and Statistics, Universität Innsbruck.
    14. Sacchelli, Sandro & Cipollaro, Maria & Fabbrizzi, Sara, 2018. "A GIS-based model for multiscale forest insurance analysis: The Italian case study," Forest Policy and Economics, Elsevier, vol. 92(C), pages 106-118.
    15. Sandrine Brèteau-Amores & Marielle Brunette & Christophe François & Antoine Leblois & Nicolas Martin-StPaul, 2021. "Index insurance for coping with drought-induced risk of production losses in French forests," Working Papers of BETA 2021-44, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    16. 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.
    17. Qin, Tao & Gu, Xuesong & Tian, Zhiwei & Pan, Huanxue & Deng, Jing & Wan, Li, 2016. "An empirical analysis of the factors influencing farmer demand for forest insurance: Based on surveys from Lin’an County in Zhejiang Province of China," Journal of Forest Economics, Elsevier, vol. 24(C), pages 37-51.
    18. Ye Song & Hongjun Peng, 2019. "Strategies of Forestry Carbon Sink under Forest Insurance and Subsidies," Sustainability, MDPI, vol. 11(17), pages 1-13, August.
    19. 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.
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    Cited by:

    1. 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.
    2. Qi Cai & Juewen Li & Wenjing Bo & Feng Han & Fangbing Hu & Jiping Wang, 2025. "The Willingness and Affecting Factors Underlying Forest Farmers’ Socialization Method to Control Forest Biological Disasters," Sustainability, MDPI, vol. 17(9), pages 1-21, April.
    3. Nan Zhou & José Luis Vilar‐Zanón & Jose Garrido & Antonio José Heras‐Martínez, 2024. "Measuring climate change from an actuarial perspective: A survey of insurance applications," Global Policy, London School of Economics and Political Science, vol. 15(S7), pages 34-46, November.

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