The decision to insure against forest fire ...
Document type :
Compte-rendu et recension critique d'ouvrage
Title :
The decision to insure against forest fire risk : An econometric analysis combining hypothetical and real data
Author(s) :
Brunette, Marielle [Auteur correspondant]
Bureau d'Économie Théorique et Appliquée [BETA]
Couture, Stéphane [Auteur]
Unité de Mathématiques et Informatique Appliquées de Toulouse [MIAT INRA]
Foncel, Jérôme [Auteur]
Université de Lille
Lille économie management - UMR 9221 [LEM]
Garcia, Serge [Auteur]
Bureau d'Économie Théorique et Appliquée [BETA]
Bureau d'Économie Théorique et Appliquée [BETA]
Couture, Stéphane [Auteur]
Unité de Mathématiques et Informatique Appliquées de Toulouse [MIAT INRA]
Foncel, Jérôme [Auteur]
Université de Lille
Lille économie management - UMR 9221 [LEM]
Garcia, Serge [Auteur]
Bureau d'Économie Théorique et Appliquée [BETA]
Journal title :
Geneva Papers on Risk and Insurance - Issues and Practice
Pages :
111-133
Publisher :
Palgrave Macmillan
Publication date :
2019
ISSN :
1018-5895
English keyword(s) :
Forest fire
Insurance decision
Ambiguity
Corner solution
Willigness to pay
Protest response
Insurance decision
Ambiguity
Corner solution
Willigness to pay
Protest response
HAL domain(s) :
Économie et finance quantitative [q-fin]/Gestion des risques [q-fin.RM]
Sciences de l'Homme et Société/Economies et finances
Sciences de l'Homme et Société/Economies et finances
English abstract : [en]
Storm and fire are the two main natural hazards in Europe. They correspond to high costs for forest owners. However, heterogeneous behaviors in terms of forest insurance demand arise across Europe. In this paper, we focus ...
Show more >Storm and fire are the two main natural hazards in Europe. They correspond to high costs for forest owners. However, heterogeneous behaviors in terms of forest insurance demand arise across Europe. In this paper, we focus on private forest owners’ insurance decisions against fire. We collected data on: i) willingness-to-pay (WTP) for insurance based on hypothetical scenarios incorporating ambiguous risks; ii) real data about insurance decisions and the individual characteristics. We simultaneously estimated real insurance and WTP using a selection equation for zero WTP that we explain by protest responses against insurance under expected utility. We found that real insurance provision is relevant to explain positive WTP, and that unobservable determinants of insurance may explain protest responses. These results confirm the interest of including observed decisions to analyze preferences towards insurance. One additional result is that facing ambiguous risk increases the WTP for insurance.Show less >
Show more >Storm and fire are the two main natural hazards in Europe. They correspond to high costs for forest owners. However, heterogeneous behaviors in terms of forest insurance demand arise across Europe. In this paper, we focus on private forest owners’ insurance decisions against fire. We collected data on: i) willingness-to-pay (WTP) for insurance based on hypothetical scenarios incorporating ambiguous risks; ii) real data about insurance decisions and the individual characteristics. We simultaneously estimated real insurance and WTP using a selection equation for zero WTP that we explain by protest responses against insurance under expected utility. We found that real insurance provision is relevant to explain positive WTP, and that unobservable determinants of insurance may explain protest responses. These results confirm the interest of including observed decisions to analyze preferences towards insurance. One additional result is that facing ambiguous risk increases the WTP for insurance.Show less >
Language :
Anglais
Popular science :
Non
Collections :
Source :