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Insurance and Forest Rotation Decisions Under Storm Risk

机译:风险风险下的保险和森林轮换决策

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摘要

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.
机译:森林往往受到风暴威胁的;由于气候变化,这种威胁可能会上升。用私人森林保险作为资助弹性和适应作为策略推荐的车辆。因此,森林所有者在定义森林管理实践时可能会考虑保险。在这方面,我们分析了森林所有者保险决策对风暴风险下森林管理的影响。我们在风险下扩展Faustmann最佳旋转模型,首先考虑森林所有者的风险偏好,而第二,整合保险决定。通过这种分析模型,我们认为随着保险范围的增加,旋转长度与森林所有者的风险厌恶无关。此外,我们确定了一些案例,森林所有者无法采用保险合同。最后,我们证明了公共转移,减少保险费,可能会鼓励森林所有者保险。

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