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This paper deals with the forest owner's attitude towards risk and the harvesting decision in several ways. First, we propose to characterize and quantify the forest owner's attitude towards risk. Second, we analyze the determinants of the forest owner's risk attitude. Finally, we determine the impact of the forest owner's risk attitude on the harvesting decision. The French forest owner's risk attitude is tackled by implementing a questionnaire, including a context-free measure borrowed from experimental economics. The determinants of the forest owner's risk attitude and harvesting decision are estimated through a recursive bivariate ordered probit model. We show that French forest owners are characterized by a relative risk aversion coefficient close to 1. In addition, we found that the forest owner's risk aversion is influenced positively and significantly by gender (female), age, and willingness to protect the environment, while the percentage of forest income in the total patrimony of the forest owner has a negative effect. Finally, we obtain that the forest owner's risk aversion positively and significantly impacts the harvesting decision.

Abstract:We analyze economic perspectives of forest adaptation to risk attributes, caused mostly by climate change. We construct a database with 89 systematically chosen articles, dealing simultaneously with climate, adaptation, risk and economy. We classify the database with regard to 18 variables bearing on the characteristics of the paper, the description of the risk and the adaptation strategy, the topic and the corresponding results. To achieve a "high level-of-evidence", we realize a multiple correspondence analysis (MCA) to identify which variables were found in combination with one other in the literature and make distinct groupings affecting adaptive decisions. We identify three groups: (i) profit and production; (ii) microeconomic risk-handling; and (iii) decision and behavior. The first group includes economic costs and benefits as the driver of adaptation and prioritizes simulation, and a mix of theoretical and empirical economic approach. The second group distinctly involves risk-related issues, in particular its management by adaptation. The third group gathers a large set of social and behavioral variables affecting management decisions collected through questionnaires. Such an approach allows the identification of gaps in the literature, concerning the impact of owners' preferences towards risk and uncertainty regarding adaptation decisions, the fact that adaptation was often reduced in an attempt to adapt to the increasing risk of wildfire, or the existence of a regional bias.