Bounded Rationality, Climate Risks, and Insurance: Is There a Market for Natural Disasters?
用等级依赖效用和前景理论估计荷兰不同气候变化情景下的风险溢价，发现洪水保险市场可能盈利，且气候变化会提高保险盈利性。
This paper examines the role of insurances to reduce uncertainty associated with climate change losses for individuals. Of special interest is the value individuals place on the reduction of increased flood risks by insurance coverage. Using rank-dependent utility and prospect theories, risk premiums are estimated under different climate change scenarios for the Netherlands. The study delivers two main insights. First, estimation results suggest that a profitable flood insurance market could be feasible. Second, climate change has the potential to increase the profitability of offering flood insurance. <i></i>