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http://dx.doi.org/10.14578/jkfs.2015.104.1.162

Estimating Willingness to Pay of Korean Forest Owners for Forest Products Disaster Insurance Premiums  

Kim, Myeong-Eun (Department of Forest Policy Research, Korea Rural Economic Institute)
Min, Kyung-Taek (Department of Forest Policy Research, Korea Rural Economic Institute)
Koo, Ja-Choon (Department of Forest Policy Research, Korea Rural Economic Institute)
Publication Information
Journal of Korean Society of Forest Science / v.104, no.1, 2015 , pp. 162-168 More about this Journal
Abstract
The purposes of this study are estimating willingness to pay (WTP) of forest owners for the disaster insurance premium for forest products in Korea and investigating factors affecting their WTP. The result with contingent valuation method shows that forest owners' median WTP is $9,440\;KRW/ha{\cdot}yr$. Advanced forest managers including devoted forest managers and forestry successors are willing to pay more for insurance premium compared to non-advanced ones, and those who have experienced disaster in their own forest land have higher WTP than others. WTP of advanced forest managers appears to be 50% higher than that of non-advanced. These results imply that policy makers should consider advanced forest managers as a priority to introduce the insurance system.
Keywords
CVM; double-bounded dichotomous choice; forest products disaster insurance; log-logistic; weibull;
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