Managing Environmental Risk Through Insurance: China
摘要
In the context of China, this chapter explores the role of insurance in compensating for environmental damages and regulating environmental risk. On the one hand, insurance is one of the most promising mechanisms to compensate for damage caused by pollution due to its mechanism to cover environmental pollution accidents. On the other hand, insurance could work as a regulatory tool to mitigate environmental pollution through ex ante governance. However, due to the inherent challenges of environmental risk and China’s legal system, insurance faces difficulties in developing environmental insurance products and functioning as theoretically expected. We propose some potential proposals such as mandatory environmental insurance and private-public partnerships which enhance private insurance to address environmental risk.