Is forest insurance a relevant vector to induce adaptation efforts to climate change?

Brunette, Marielle; Couture, Stéphane; Pannequin, François

doi:10.1007/s13595-017-0639-9

Cited by 15 publications

(8 citation statements)

References 35 publications

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“…However, for a long time, attitude towards risk is considered to be a main driver of forest-management decisions [35]. In addition, some recent papers highlight the role of the forest owner's attitude towards uncertainty [36,37]. Furthermore, uncertainties related to climate change are numerous with regard to the implications of climate change, alternative management, the timber market, and the expert advice provided by forest consultants [38].…”

Section: Discussionmentioning

confidence: 99%

Adaptation to Climate Change in Forestry: A Multiple Correspondence Analysis (MCA)

Brunette

Bourke

Hanewinkel

et al. 2018

Forests

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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.

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Section: Discussionmentioning

confidence: 99%

Adaptation to Climate Change in Forestry: A Multiple Correspondence Analysis (MCA)

Brunette

Bourke

Hanewinkel

et al. 2018

Forests

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“…To conclude, it should be noted that among the other topics analyzed, we have forest insurance in the context of climate change [20], carbon insurance [29] and the spatial dimension of forest insurance [25].…”

Section: The Main Issues Addressed In the Literaturementioning

confidence: 99%

“…We can imagine subsidizing the insurance premium, as is the case in Europe for agricultural insurance, in the context of the Common Agricultural Policy. We can also imagine integrating the adaptation efforts of forest owners towards climate change in the insurance premium computation [20]. Indeed, implementing adaptation strategies such as the reduction of density, the planting of more well-adapted tree species or the reduction of rotation age would make it possible to reduce risk exposure.…”

Section: Public Policies and Forest Insurancementioning

confidence: 99%

Forest Insurance for Natural Events: An Overview by Economists

Brunette

Couture²

2023

Forests

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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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“…The premiums are normally estimated based on the pure risk, which is also known as the pure loss costs, administrative cost, contribution to catastrophe reserve as well as reasonable return making an insurance contract actuarially fair. Other factors to consider according to Brunette et al (2017) in purchasing forestry insurance from risk-neutral insurance are the premium deductibles, expected compensation to maximise their expected utility and reinsurance package available as well as government support (GAIP, 2017). Marketing channels for mandatory forestry insurance may be a collaboration with cooperatives, trade associations and suppliers of inputs, such as forestry equipment, processors, forester's association, research institutions and universities with forestry programmes.…”

Section: Brief Literature Review 21 Forestry Insurance Products and Covermentioning

confidence: 99%

Forestry insurance preference among tree growers in the Ashanti Region of Ghana: a tobit and multi-nomial regression approach

Mensah

Twintoh

Amrago

et al. 2021

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PurposeThe study analyses the preference for forestry insurance amongst tree growers in the Ashanti Region of Ghana. Specifically, the authors examine the factors influencing the amount of forestry insurance and the choice for forestry insurance types.Design/methodology/approachA total of one hundred and seventy (170) tree growers were sampled for the study. The tobit model, multi-nomial regression and Kendall's tau were employed to analyse the factors affecting the amount for forestry insurance, the choice for forestry insurance types and the perils to forest quality, respectively.FindingsThe results of the study indicate that the incidence of bush fire and theft were the key perils that affect forest quality. In total, 52.94% of respondents preferred forest plantation fire insurance as named-peril insurance whereas 70.59% preferred a combination of forest plantation fire, windstorm and consequential loss insurance as multi-peril insurance. The majority (89.4%) of the respondents were willing to pay an amount between Ghc 10.00–49.00 (US$ 2–8) per stand. On the one hand, results of the tobit model reveal age, income, experience in forest management, land ownership and the previous occurrence of fire as the factors affecting the amount for forestry insurance. On the other hand, the multi-nomial results indicate the previous occurrence of fire, gender, forest size, income and risk aversion significantly influenced the choice for forestry insurance types, namely named peril and multi-peril.Originality/valueSeveral studies exist for forestry insurance in the developed countries. However, in West Africa specifically, Ghana, studies on forestry insurance appear to be non-existent. Above and beyond, this study, therefore, adds to the paucity of research on forestry insurance in Ghana and serves as a framework for agricultural insurance institutions such as the Ghana Agricultural Insurance Pool (GAIP) and World cover and other agricultural insurance institutions globally.

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Is forest insurance a relevant vector to induce adaptation efforts to climate change?

Cited by 15 publications

References 35 publications

Adaptation to Climate Change in Forestry: A Multiple Correspondence Analysis (MCA)

Adaptation to Climate Change in Forestry: A Multiple Correspondence Analysis (MCA)

Forest Insurance for Natural Events: An Overview by Economists

Forestry insurance preference among tree growers in the Ashanti Region of Ghana: a tobit and multi-nomial regression approach

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