Determinants of insurance demand against forest fire risk: an empirical analysis of French private forest owners

Marielle Brunette (), Stéphane Couture and Serge Garcia

No 2014-12, Working Papers - Cahiers du LEF from Laboratoire d'Economie Forestiere, AgroParisTech-INRA

Abstract: In this article, we estimate the demand of French private forest owners for forest insurance against fire risk. For this purpose, we combine experimental data and real-world data on forest owners’ characteristics. Our econometric approach consists in estimating both insurance participation and coverage-level decisions, while accounting for sample selection issues. Our results clearly show that the type of public assistance is a significant determinant in the insurance decision. Other attributes of the experiment such as the expected loss only explain coverage-level decisions, whereas the existence of an ambiguity concerning the probability of fire occurrence positively affects both insurance participation and coverage-level decisions.

Keywords: Insurance; Forest; Fire risk; Ambiguity; Public compensation; Experimental data (search for similar items in EconPapers)
JEL-codes: C51 D81 Q23 Q28 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2014-12, Revised 2014-12
New Economics Papers: this item is included in nep-agr, nep-env, nep-ias and nep-upt
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Citations: View citations in EconPapers (1)

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http://www6.nancy.inra.fr/lef/Cahiers-du-LEF/2014/2014-12 First version, 2010

Related works:
Working Paper: Determinants of insurance demand against forest fire risk: an empirical analysis of French private forest owners (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:lef:wpaper:2014-12

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