Earthquake Risk Information and Risk Aversive Behavior: Evidence from a Survey of Residents in Tokyo Metropolitan Area

Yasuo Kawawaki
Additional contact information
Yasuo Kawawaki: Visiting Professor, Osaka School of International Public Policy (OSIPP)

No 12E008, OSIPP Discussion Paper from Osaka School of International Public Policy, Osaka University

Abstract: This paper analyzes the relationship between provision of earthquake risk information and residents' willingness to pay (WTP) for disaster risk reduction by the Contingent Valuation Method (CVM), using questionnaire survey data on the purchase of earthquake insurance in the Tokyo Metropolitan Area, Japan. Degree of disaster risk aversion and subjective probability of loss are estimated as parameters of expected utility function in a discrete choice model. The results suggest that when more precise and specific earthquake risk information is provided, residents of vulnerable houses are willing to pay more for disaster risk reduction, with larger subjective probability of loss, while those in safe houses are willing to pay slightly less, with a larger degree of risk aversion.

Keywords: CVM; WTP; Earthquake Insurance; Risk Aversion; Subjective Probability of Loss (search for similar items in EconPapers)
JEL-codes: D81 D83 R28 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2012-10
New Economics Papers: this item is included in nep-dcm, nep-ias and nep-upt
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.osipp.osaka-u.ac.jp/archives/DP/2012/DP2012E008.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osp:wpaper:12e008

Access Statistics for this paper

More papers in OSIPP Discussion Paper from Osaka School of International Public Policy, Osaka University Contact information at EDIRC.
Bibliographic data for series maintained by Akiko Murashita ().