Mandating Environmental Liability Insurance

Plant cuticles are extracellular membranes covering aerial organs of plants, whose main functions rely on the protection against water loss, mechanical injury from the environment, attack of microorganism, and also regulation of gas exchange. Among the several constituents of plant cuticles, waxes are those that play an important role in their barrier properties. In order to enhance the mechanical properties of wax, NFC was applied in. In the project, mainly two kinds of methods were used to prepare wax-NFC composites. One way was wax and NFC were dissolved in toluene and casted to be a film, another way was to prepare NFC aerogel firstly, and then, impregnated the aerogel into wax liquid. After pressing it the structure was more compact. In order to characterize the properties of samples, SEM, XRD, TGA, DSC, Contact angle testing, tensile test and oxygen permeability methods were applied in

The climate change double whammy: Flood damage and the determinants of flood insurance coverage, the case of post-Katrina New Orleans

This paper advances scholarly debate on the contradictions of environmental risk management measures by analyzing the determinants of flood insurance coverage among a sample of 403 residents in New Orleans, a city undergoing rapid transformation due to post-Katrina rebuilding efforts and anthropogenic modifications of climate, hydrology, and ecology. The paper focuses on several predictors including subjective flood risk perception, trust in government officials, sociodemographic characteristics, and experience with flood damage. Using binary logistic regression, the results show that the likelihood of having flood insurance coverage is associated with past flood damage and socioeconomic status. Older people (over age 65) are more likely to have flood insurance than younger residents. Race, gender, trust, and perceived flood risk are not statistically significant predictors of flood insurance. We connect our findings to the paradoxes and conflictual dynamics of flood insurance, a major risk mitigation measure. As we point out, in flood-prone cities like New Orleans, flood insurance operates as a double whammy: uninsured or underinsured homes face pervasive risk of both flooding and rising insurance premiums under the conditions of global climate change

Earthquake Risk and Earthquake Catastrophe Insurance for the People's Republic of China

The year 2008 witnessed the renewed interests in earthquake risk management and insurance in the People's Republic of China (PRC), after the Wenchuan earthquake hit the country in May. Located along the southeastern edge of the Euro-Asian Plate, the PRC has a relatively high seismicity, which is manifested by the frequent occurrence of large and disastrous earthquakes. Buildings and infrastructure in the earthquake-prone regions of the PRC have relatively low earthquake resistance levels. Hence, disastrous earthquakes result not only in large numbers of injuries and fatalities but also in huge economic losses from property damages. While the PRC began testing earthquake insurance programs in the late 1980s, the overall penetration rate remains very low. The low penetration rate not only creates disruptions for the government after a major earthquake but also, in some cases, delays the reconstruction efforts. Moreover, as a result of the low penetration of earthquake insurance in the PRC, the government serves as the predominant bearer of financial risk from earthquake catastrophes. This paper discusses historical earthquakes and earthquake risk in the PRC and the recent developments of PRC's earthquake risk reduction efforts. The general principles of earthquake programs are explained and the critical issues of formulating earthquake programs in the PRC are discussed, including lessons from earthquake insurance in other countries and other catastrophe insurance in the PRC, data issues, loss risk modeling issues, financial risk modeling issues, legislative issues, and public awareness issues. The paper concludes with several policy directions that the Asian Development Bank can take to help the PRC in its design and implementation of earthquake insurance.earthquake insurance; China; earthquake risk; Wenchuan earthquake; catastrophe insurance

An Uncertain Volatility Explanation for Delayed Calls of Convertible Bonds

Arbitrage-free price bounds for convertible bonds are obtained assuming a stochastic volatility process for the common stock that lies within a band but makes few other assumptions about volatility dynamics. Equity-linked hazard rates, stochastic interest rates and different assumptions about default and recovery behavior are accommodated within this approach. A non-linear multi-factor reduced-form equity-linked default model leads to a set of non-linear partial differential complementarity equations that are governed by the volatility path. Empirical results focus on call notice period effects, showing that uncertain volatility can capture the call premia so often observed in issuer’s call policies. Increasingly pessimistic values for the issuer’s substitution asset obtain as we introduce more uncertainty during the notice period. Volatility uncertainty is thus a useful mechanism to explain issuers delayed call policies.call notice period, call premium, convertible bond, delayed calls, equity-linked default, stochastic interest rates, volatility uncertainty

Risk and Uncertainty in Environmental Economics: From Theory to Policy

A lack of awareness and understanding of risk and uncertainty can lead to poor decision making and higher costs for policy providers, as not accounting for them may produce policy which is inflexible and with a negative effect on welfare. Further, misunderstanding of and/or failure to account for risk and uncertainty can inhibit research and development for policy to which environmental economics can contribute (for example, in developing effective measures of sustainability). The aim of this project is to develop guidelines for ‘Best Practice’ approaches to risk and uncertainty in environmental economics for guiding policy development and implementation, taking into account key issues such as costs, irreversibility, adaptation and dynamics. These guidelines are developed by examining the frameworks commonly used by environmental economists to account for risk and uncertainty (such as the Precautionary Principle and Cost Benefit Analysis) as well as specifically developed theories (e.g. Quiggin’s Rank Dependent Utility Theory), borrowing from other disciplines (e.g. Prospect Theory) and drawing attention to lesser known ideas (e.g. Shackle’s Model).Environmental Economics and Policy,

Handbook on Climate Change and Disaster Resilient Water, Sanitation and Hygiene Practices

This handbook was developed to help governmental and non-governmental agencies involved in safe water delivery, sanitation hygiene at local level, union and ward disaster management committees, to enhance their respective capacities to cope with climate change and disaster risks. It considers the rural context of Bangladesh and provides field-level workers and practitioners practical ideas about water supply, sanitation and hygiene practices in the context of climate change and disaster risk

MCA4climate: A Practical Framework for Planning Pro-Development Climate Policy

MCA4climate is a major new UNEP initiative providing 1 Introduction practical assistance to governments in preparing their climate change mitigation and adaptation plans and strategies. It aims to help governments, particularly in developing countries, identify policies and measures that are low cost, environmentally effective and consistent with national development goals. It does this by providing a structured approach to assessing and prioritizing climate-policy options, while taking into consideration associated social, economic, environmental and institutional costs and benefits. In doing so, it seeks to counter the widely held perception that tackling climate change is costly, highlight the potential developmental benefits of addressing climate change and encourage action to that end