Global S&T Development Trend Analysis Platform of Resources and Environment
DOI | 10.1029/2019WR024853 |
Integrating Physical and Financial Approaches to Manage Environmental Financial Risk on the Great Lakes | |
Meyer, Eliot S.1; Foster, Benjamin T.1; Characklis, Gregory W.1; Brown, Casey2; Yates, Andrew J.3 | |
2020-05-01 | |
发表期刊 | WATER RESOURCES RESEARCH
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ISSN | 0043-1397 |
EISSN | 1944-7973 |
出版年 | 2020 |
卷号 | 56期号:5 |
文章类型 | Article |
语种 | 英语 |
国家 | USA |
英文摘要 | Physical and financial approaches each provide different benefits for managing environmental financial risks. Index insurance contracts, a financial approach, have been proposed for managing numerous environmental financial risks. A method for testing when and how physical (dredging) and financial risk management strategies (index insurance) could be deployed in tandem to maximize improvements in utility for commercial shippers on the Great Lakes is developed using principles from the benefit-cost analysis and expected utility theory. Using a utility function with a decreasing marginal utility of income explicitly models the risk aversion of commercial shippers. The probabilistic nature of future revenue and costs is modeled and combined with the utility function to determine a Net Option Value. This value represents the maximum amount commercial shippers would pay more than the cost for reduced variability in net revenues. Results indicate that while the Net Option Value for dredging exceeds the potential benefits of using insurance contracts alone, the combination of dredging and insurance can improve overall utility with less cost than dredging alone. The strong autocorrelation in lake levels over long periods reduces the value of index insurance, such that the results show a potential lower bound of the value of combining physical and financial approaches in highly variable systems. |
领域 | 资源环境 |
收录类别 | SCI-E ; SSCI |
WOS记录号 | WOS:000537736400043 |
WOS关键词 | WEATHER INDEX INSURANCE ; CLIMATE-CHANGE ; WATER ; UNCERTAINTY ; DROUGHT ; COST |
WOS类目 | Environmental Sciences ; Limnology ; Water Resources |
WOS研究方向 | Environmental Sciences & Ecology ; Marine & Freshwater Biology ; Water Resources |
引用统计 | |
文献类型 | 期刊论文 |
条目标识符 | http://119.78.100.173/C666/handle/2XK7JSWQ/280666 |
专题 | 资源环境科学 |
作者单位 | 1.Univ N Carolina, Dept Environm Sci & Engn, Gillings Sch Global Publ Hlth, Chapel Hill, NC 27515 USA; 2.Univ Massachusetts, Dept Civil & Environm Engn, Amherst, MA 01003 USA; 3.Univ N Carolina, Dept Econ & Curriculum Environm & Ecol, Chapel Hill, NC 27515 USA |
推荐引用方式 GB/T 7714 | Meyer, Eliot S.,Foster, Benjamin T.,Characklis, Gregory W.,et al. Integrating Physical and Financial Approaches to Manage Environmental Financial Risk on the Great Lakes[J]. WATER RESOURCES RESEARCH,2020,56(5). |
APA | Meyer, Eliot S.,Foster, Benjamin T.,Characklis, Gregory W.,Brown, Casey,&Yates, Andrew J..(2020).Integrating Physical and Financial Approaches to Manage Environmental Financial Risk on the Great Lakes.WATER RESOURCES RESEARCH,56(5). |
MLA | Meyer, Eliot S.,et al."Integrating Physical and Financial Approaches to Manage Environmental Financial Risk on the Great Lakes".WATER RESOURCES RESEARCH 56.5(2020). |
条目包含的文件 | 条目无相关文件。 |
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