Please use this identifier to cite or link to this item: https://doi.org/10.48548/pubdata-1222
Resource typeWorking Paper
Title(s)Natural vs. financial insurance in the management of public-good ecosystems
DOI10.48548/pubdata-1222
Handle20.500.14123/1285
CreatorQuaas, Martin F.  0000-0003-0812-8829
Baumgärtner, Stefan  0000-0001-8314-8462  121846857
AbstractIn the face of uncertainty, ecosystems can provide natural insurance to risk averse users of ecosystem services. We employ a conceptual ecological-economic model to analyze the allocation of (endogenous) risk and ecosystem quality by risk averse ecosystem managers who have access to financial insurance, and study the implications for individually and socially optimal ecosystem management, and policy design. We show that while an improved access to financial insurance leads to lower ecosystem quality, the effect on the free-rider problem and on welfare is determined by ecosystem properties. We derive conditions on ecosystem functioning under which, if financial insurance becomes more accessible, (i) the extent of optimal regulation increases or decreases; and (ii) welfare, in the absence of environmental regulation, increases or decreases.
LanguageEnglish
KeywordsEcosystem; Risk; Insurance; Ökosystem; Versicherung; Haftpflichtrisiko
Year of publication in PubData2006
Publishing typeFirst publication
Publication versionPublished version
Date issued2006-11-22
Creation contextResearch
Published byMedien- und Informationszentrum, Leuphana Universität Lüneburg
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