The objective of the paper is to analyze the risk management behavior of a non-industrial private forest owner under uncertainty about the timber production. Two types of hedging strategies with harvesting decisions are studied: a financial practice versus a physical one. We develop a two-period...

Introducing minimal assumptions on the individual preferences, I show that the Willingness To Pay for both a FSD and SSD reduction of risk may always be described as the sum of a mean effect, a pure risk effect and a wealth effect. As a result, the WTP of a risk-averse decision maker may be...

Introducing minimal assumptions on the individual preferences, I show that the Willingness To Pay for both a FSD and SSD reduction of risk may always be described as the sum of a mean effect, a pure risk effect and a wealth effect. As a result, the WTP of a risk-averse decision maker may be...