Willingness to Pay for Hurricane-Resistant Home Improvement Programs: a Choice Experiment in Northeastern and Mid-Atlantic United States

William F. Vásquez () and Pallab Mozumder ()
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William F. Vásquez: Fairfield University
Pallab Mozumder: Florida International University

Economics of Disasters and Climate Change, 2017, vol. 1, issue 3, No 4, 263-276

Abstract: Abstract We conducted a choice experiment to investigate household preferences for a home improvement program that would make housing structures more resistant to hurricanes in Northeastern and Mid-Atlantic United States. The experimental design included four attributes with varying levels: certified home inspection, matching grant for home improvements, conditional insurance premium discount, and program fee. Respondents’ choices were analyzed using scale-heterogeneity multinomial logit models in order to control for respondents’ behavioral heterogeneity. Findings indicate that households would value a program that provides incentives in the form of matching grants for hurricane-resistant home improvements and conditional insurance discounts. Policy implications are discussed.

Keywords: Hurricane risk; Home improvement; Hurricane-resistant homes; Natural disasters; Insurance; Choice experiment (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s41885-017-0016-z

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