Eliciting Demand for Flood Insurance under Climate Change: A Choice Experiment Approach

Ya-Pin Lyu, Ching-Cheng Chang and Shu-Ling Chen

No 235983, 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts from Agricultural and Applied Economics Association

Abstract: The purpose of this study is to unveil the nature of individual’s preference for PPP flood insurance alternatives under climate change using the choice experiment method and a case study in Tainan City in Taiwan. Our estimates shows that respondents who perceived increasingly higher risks in agriculture and fishery industry were less likely to buy flood insurance. Several reasons could account for their inactiveness in insurance purchase, including insufficient knowledge and financial capacity, over-reliance on government relief, and the lack of diverse insurance alternatives to meet local industrial needs. The simulated market penetration under different climate scenarios also reveals the market potentials do exist and will grow in the future while climate conditions get worse.

Keywords: Demand and Price Analysis; Financial Economics; Institutional and Behavioral Economics; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 1
Date: 2016-05
New Economics Papers: this item is included in nep-agr, nep-dcm, nep-env and nep-ias
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea16:235983

DOI: 10.22004/ag.econ.235983

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