IDEAS home Printed from https://ideas.repec.org/a/eee/ecomod/v392y2019icp117-127.html
   My bibliography  Save this article

A first analysis on the need to integrate ecological aspects into financial insurance

Author

Listed:
  • Valente, Donatella
  • Miglietta, Pier Paolo
  • Porrini, Donatella
  • Pasimeni, Maria Rita
  • Zurlini, Giovanni
  • Petrosillo, Irene

Abstract

It is known that financial insurance can address the economic impacts of a natural disaster, but some ecological aspects can play a crucial role in mitigating the overall risks for socio-ecological systems. To better strengthen the study of these relations, the aims of this paper are: (1) to analyze the main research topics of the scientific literature on ecological and/or financial-economic insurance to face natural disasters, through a co-word network analysis; (2) to analyze the temporal trends of the total Gross Insurance Premium and Meteorological and climatological extreme events in 29 OECD countries; and (3) to carry out a Principal Component Analysis (PCA) of some selected variables in order to conceptualize a first empirical model combining financial-economic and ecological insurance to face natural disasters. The literature review has shown a predominance of topics related to financial insurance (about 60%), and the co-word map of key words has highlighted a common space where economic and ecological insurances interact. PCA highlighted three major components explaining 90.6% of the overall variation and discriminating aspects more related to the “financial” insurance, from those related to the “ecological” insurance. More in detail, PC1, which represents the financial insurance, explains the 60.4% of variation, PC2 and PC3 that represent surrogates of the “ecological” insurance explain respectively the 19.6% and the 10.6% of variation. On the basis of the application of the proposed empirical model, countries with high levels of financial and ecological preparedness have been identified. The next steps of this research will be focused on a pilot study area where a quantitative assessment will be applied to better define the landscape contribution to natural disaster risk mitigation, the analysis of the role of social capital through a cross-scales approach, in terms of policies and management strategies, and the investigation of innovative economic tools to take into account specific payment for ecosystem services in the context of natural disasters.

Suggested Citation

  • Valente, Donatella & Miglietta, Pier Paolo & Porrini, Donatella & Pasimeni, Maria Rita & Zurlini, Giovanni & Petrosillo, Irene, 2019. "A first analysis on the need to integrate ecological aspects into financial insurance," Ecological Modelling, Elsevier, vol. 392(C), pages 117-127.
    • Handle: RePEc:eee:ecomod:v:392:y:2019:i:c:p:117-127
    DOI: 10.1016/j.ecolmodel.2018.11.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0304380018303971
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecolmodel.2018.11.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ying Yang & Mingzhi Wu & Lei Cui, 2012. "Integration of three visualization methods based on co-word analysis," Scientometrics, Springer;Akadémiai Kiadó, vol. 90(2), pages 659-673, February.
    2. Borensztein, Eduardo & Cavallo, Eduardo & Jeanne, Olivier, 2017. "The welfare gains from macro-insurance against natural disasters," Journal of Development Economics, Elsevier, vol. 124(C), pages 142-156.
    3. Breckner, Miriam & Englmaier, Florian & Stowasser, Till & Sunde, Uwe, 2016. "Resilience to natural disasters — Insurance penetration, institutions, and disaster types," Economics Letters, Elsevier, vol. 148(C), pages 106-110.
    4. Eugenio Figueroa & Roberto Pasten, 2015. "The economic value of forests in supplying local climate regulation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(3), pages 446-457, July.
    5. A. Amendola & Y. Ermoliev & T. Ermolieva & V. Gitis & G. Koff & J. Linnerooth-Bayer, 2000. "A Systems Approach to Modeling Catastrophic Risk and Insurability," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 21(2), pages 381-393, May.
    6. Mäler, Karl-Göran & Li, Chuan-Zhong, 2010. "Measuring sustainability under regime shift uncertainty: a resilience pricing approach," Environment and Development Economics, Cambridge University Press, vol. 15(6), pages 707-719, December.
    7. Benali, Nadia & Feki, Rochdi, 2017. "The impact of natural disasters on insurers’ profitability: Evidence from Property/Casualty Insurance company in United States," Research in International Business and Finance, Elsevier, vol. 42(C), pages 1394-1400.
    8. Deutsch, Lisa & Folke, Carl & Skanberg, Kristian, 2003. "The critical natural capital of ecosystem performance as insurance for human well-being," Ecological Economics, Elsevier, vol. 44(2-3), pages 205-217, March.
    9. B. Smit & I. Burton & R.J.T. Klein & R. Street, 1999. "The Science of Adaptation: A Framework for Assessment," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 4(3), pages 199-213, September.
    10. W. Adger & P. Kelly, 1999. "Social Vulnerability to Climate Change and the Architecture of Entitlements," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 4(3), pages 253-266, September.
    11. Osiel Gonz�lez D�vila & Mavra Stithou & Gianluca Pescaroli & Luca Pietrantoni & Phoebe Koundouri & Pedro D�az-Simal & B�n�dicte Rulleau & Nabil Touli & Fran�ois Hissel & Edmund Penning-Rowsell, 2013. "Promoting resilient economies by exploring insurance potential for facing coastal flooding and erosion: evidence from Italy, Spain, France and United Kingdom," GRI Working Papers 127, Grantham Research Institute on Climate Change and the Environment.
    12. Johannesson, Magnus & Johansson, Per-Olov, 1997. "Quality of life and the WTP for an increased life expectancy at an advanced age," Journal of Public Economics, Elsevier, vol. 65(2), pages 219-228, August.
    13. Quaas, Martin F. & Baumgärtner, Stefan, 2008. "Natural vs. financial insurance in the management of public-good ecosystems," Ecological Economics, Elsevier, vol. 65(2), pages 397-406, April.
    14. Ermoliev, Yuri M. & Ermolieva, Tatiana Y. & MacDonald, Gordon J. & Norkin, Vladimir I. & Amendola, Aniello, 2000. "A system approach to management of catastrophic risks," European Journal of Operational Research, Elsevier, vol. 122(2), pages 452-460, April.
    15. Miyamoto, Motoe & Mohd Parid, Mamat & Noor Aini, Zakaria & Michinaka, Tetsuya, 2014. "Proximate and underlying causes of forest cover change in Peninsular Malaysia," Forest Policy and Economics, Elsevier, vol. 44(C), pages 18-25.
    16. Axel Bronstert, 2003. "Floods and Climate Change: Interactions and Impacts," Risk Analysis, John Wiley & Sons, vol. 23(3), pages 545-557, June.
    17. Fabian Barthel & Eric Neumayer, 2012. "A trend analysis of normalized insured damage from natural disasters," Climatic Change, Springer, vol. 113(2), pages 215-237, July.
    18. Marten Scheffer & Steve Carpenter & Jonathan A. Foley & Carl Folke & Brian Walker, 2001. "Catastrophic shifts in ecosystems," Nature, Nature, vol. 413(6856), pages 591-596, October.
    19. Choate, G. Marc & Archer, Stephen H., 1975. "Irving Fisher, Inflation, and the Nominal Rate of Interest," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 10(4), pages 675-685, November.
    20. Perez-Maqueo, O. & Intralawan, A. & Martinez, M.L., 2007. "Coastal disasters from the perspective of ecological economics," Ecological Economics, Elsevier, vol. 63(2-3), pages 273-284, August.
    21. Donatella Porrini & Reimund Schwarze, 2014. "Insurance models and European climate change policies: an assessment," European Journal of Law and Economics, Springer, vol. 38(1), pages 7-28, August.
    22. Neil Adger, W., 1999. "Social Vulnerability to Climate Change and Extremes in Coastal Vietnam," World Development, Elsevier, vol. 27(2), pages 249-269, February.
    23. Christian Gollier, 2005. "Some Aspects of the Economics of Catastrophe Risk Insurance," CESifo Working Paper Series 1409, CESifo.
    24. Admiraal, Jeroen F. & Wossink, Ada & de Groot, Wouter T. & de Snoo, Geert R., 2013. "More than total economic value: How to combine economic valuation of biodiversity with ecological resilience," Ecological Economics, Elsevier, vol. 89(C), pages 115-122.
    25. Zhang, Kerong & Song, Conghe & Zhang, Yulong & Zhang, Quanfa, 2017. "Natural disasters and economic development drive forest dynamics and transition in China," Forest Policy and Economics, Elsevier, vol. 76(C), pages 56-64.
    26. Roger Jones, 2001. "An Environmental Risk Assessment/Management Framework for Climate Change Impact Assessments," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 23(2), pages 197-230, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Feng Kong & Yifei Wang, 2022. "Better understanding of climate catastrophe insurance in China: issues and opportunities, international insights, and directions for development," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 114(3), pages 2969-2990, December.
    2. Pierluigi Toma & Pier Paolo Miglietta & Domenico Morrone & Donatella Porrini, 2020. "Environmental risks and efficiency performances: The vulnerability of Italian forestry firms," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(6), pages 2793-2803, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Perez-Maqueo, O. & Intralawan, A. & Martinez, M.L., 2007. "Coastal disasters from the perspective of ecological economics," Ecological Economics, Elsevier, vol. 63(2-3), pages 273-284, August.
    2. Huicong Jia & Fang Chen & Enyu Du, 2021. "Adaptation to Disaster Risk—An Overview," IJERPH, MDPI, vol. 18(21), pages 1-21, October.
    3. W. Neil Adger & Saleemul Huq & Katrina Brown & Declan Conway & Mike Hulme, 2003. "Adaptation to climate change in the developing world," Progress in Development Studies, , vol. 3(3), pages 179-195, July.
    4. Jones, Lindsey & d'Errico, Marco, 2019. "Whose resilience matters? Like-for-like comparison of objective and subjective evaluations of resilience," World Development, Elsevier, vol. 124(C), pages 1-1.
    5. Mook Bangalore & Andrew Smith & Ted Veldkamp, 2019. "Exposure to Floods, Climate Change, and Poverty in Vietnam," Economics of Disasters and Climate Change, Springer, vol. 3(1), pages 79-99, April.
    6. Monika Winn & Manfred Kirchgeorg & Andrew Griffiths & Martina K. Linnenluecke & Elmar Günther, 2011. "Impacts from climate change on organizations: a conceptual foundation," Business Strategy and the Environment, Wiley Blackwell, vol. 20(3), pages 157-173, March.
    7. Delphine Boutin, 2014. "Climate vulnerability, communities' resilience and child labour," Revue d'économie politique, Dalloz, vol. 124(4), pages 625-638.
    8. H.M. Tuihedur Rahman & Gordon M. Hickey, 2020. "An Analytical Framework for Assessing Context-Specific Rural Livelihood Vulnerability," Sustainability, MDPI, vol. 12(14), pages 1-26, July.
    9. Barnett, Jon, 2001. "Adapting to Climate Change in Pacific Island Countries: The Problem of Uncertainty," World Development, Elsevier, vol. 29(6), pages 977-993, June.
    10. Jia Xu & Makoto Takahashi, 2021. "Progressing vulnerability of the immigrants in an urbanizing village in coastal China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 8012-8026, May.
    11. Chiarity Zetem Chiambah & Cordelia G. Kometa, 2022. "Rainfall Variability and Food Crop Vulnerability in Ndu Sub-Division, North West Region of Cameroon," Journal of Geography and Geology, Canadian Center of Science and Education, vol. 11(3), pages 1-39, September.
    12. Sanjit Maiti & Sujeet Jha & Sanchita Garai & Arindam Nag & R. Chakravarty & K. Kadian & B. Chandel & K. Datta & R. Upadhyay, 2015. "Assessment of social vulnerability to climate change in the eastern coast of India," Climatic Change, Springer, vol. 131(2), pages 287-306, July.
    13. Xiaorui Zhang & Zhenbo Wang & Jing Lin, 2015. "GIS Based Measurement and Regulatory Zoning of Urban Ecological Vulnerability," Sustainability, MDPI, vol. 7(8), pages 1-19, July.
    14. repec:unu:wpaper:wp2012-082 is not listed on IDEAS
    15. Ahmad Taki & Viet Ha Xuan Doan, 2022. "A New Framework for Sustainable Resilient Houses on the Coastal Areas of Khanh Hoa, Vietnam," Sustainability, MDPI, vol. 14(13), pages 1-31, June.
    16. Williamson, Tim & Hesseln, Hayley & Johnston, Mark, 2012. "Adaptive capacity deficits and adaptive capacity of economic systems in climate change vulnerability assessment," Forest Policy and Economics, Elsevier, vol. 15(C), pages 160-166.
    17. W.Neil Adger, 2001. "Scales of governance and environmental justice for adaptation and mitigation of climate change," Journal of International Development, John Wiley & Sons, Ltd., vol. 13(7), pages 921-931.
    18. Arouri, Mohamed & Nguyen, Cuong & Youssef, Adel Ben, 2015. "Natural Disasters, Household Welfare, and Resilience: Evidence from Rural Vietnam," World Development, Elsevier, vol. 70(C), pages 59-77.
    19. Hochachka, Gail, 2021. "Integrating the four faces of climate change adaptation: Towards transformative change in Guatemalan coffee communities," World Development, Elsevier, vol. 140(C).
    20. Clara Champalle & James D. Ford & Mya Sherman, 2015. "Prioritizing Climate Change Adaptations in Canadian Arctic Communities," Sustainability, MDPI, vol. 7(7), pages 1-25, July.
    21. Barry Smit & Mark Skinner, 2002. "Adaptation options in agriculture to climate change: a typology," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 7(1), pages 85-114, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecomod:v:392:y:2019:i:c:p:117-127. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/ecological-modelling .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.