Are Building Codes an Effective Adaptation to Wind Risk? Evidence from Remotely Detected Blue Tarps

David Wolf and Kenji Takeuchi

American Economic Journal: Economic Policy, 2026, vol. 18, issue 3, 509-40

Abstract: Hurricanes cause significant wind and water damage, yet economic research primarily focuses on the latter due to data limitations. We overcome this problem by analyzing photographs taken after Hurricane Irma (2017 ) to locate blue-tarped homes. Using a regression discontinuity framework, we find the 2001 Florida Building Code impacted wind risk for over 500,000 homeowners. Adopters were 22 percent less likely to experience wind damage and saw a 27 percent reduction in damage severity. Unrepaired properties also sold for 13.3 percent ($29,400) less and were harder to sell, underscoring the importance of building codes in mitigating risk and promoting climate change adaptation.

JEL-codes: Q54 R31 R38 (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1257/pol.20240544

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