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A dynamic approach of forest owner self-insurance behavior in risky forest management: saving versus sylvicultural practices Inra
Brunette, M.; Couture, S.; Langlais, E.; SCSE, Société Canadienne de Science Économique (CAN); EALE, European Association of Law and Economics (GBR); Geneva Association (CHE); AT.IN.E.R., Athens Institute for Education and Research, The Economics Research Unit (GRC).
The objective of this article is to study the forest owner’s coverage strategies in the presence of natural hazards. We develop a theoretical model which considers two periods. In this model, the private forest owner can either save a part of his/her income in order to take precautions against natural hazards or adopt sylvicultural practices. Thus we want to compare a financial prevention tool with a physical one. Our analysis also consider the non-profit services provided by the forest. We produce several comparative static analysis especially on initial wealth, on initial forest stock and on timber prices. We show that, under some assumptions, accumulation of savings and sylvicultural practices may be seen as perfectly substitutable for the forest...
Tipo: Meeting Paper Palavras-chave: AUTO-ASSURANCE RISK; AMENITIES; FOREST.
Ano: 2007 URL:
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