Analysis on Market Failure of Forest Insurance in China Based on the Supply Perspective

摘要

Forest insurance is a kind of insurance that regards shelterbelt forest, timber, felled logs and bamboos which are not stored as the insured, providing financial security for those forest when faced with economic losses caused by natural disasters or accidents. On the whole growth, it is of vital importance to maintain the sustainable development of forestry. In recent years, the forest insurance has developed in a certain degree. But under the market economy, the commercial operation model of the forest insurance falls into the situation of market failure that can be defined as "limited demand, insufficient supply". Effective supply shortage is the fundamental reason limiting to the development of forest insurance. This paper analyzes the market failure of forest insurance under the system of short supply, explores the reasons from an economic perspective, and gives ideas on constructing the policy-guided forest insurance.