Public Flood Risk Mitigation and the Homeowner’s Insurance Demand Response

Stefan Borsky and Hannah Hennighausen

Land Economics, 2022, vol. 98, issue 4, 537-559

Abstract: This article investigates the influence of public risk mitigating activities on individuals’ decisions to privately mitigate their disaster risks through changes in their risk perceptions. We exploit heterogeneity in measures under the U.S. Community Rating System to empirically demonstrate that public investment in flood risk communication activities crowds in individuals’ flood insurance demand, while activities that lower the flood hazard residents face crowd out individuals’ flood insurance demand. We contribute to the discussion of the efficacy of disaster risk mitigation strategies and who ultimately bears the costs of natural disasters.

JEL-codes: Q54 Q58 (search for similar items in EconPapers)
Date: 2022
Note: DOI: 10.3368/le.98.4.061720-0088R2
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Public flood risk mitigation and the homeowner's insurance demand response (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:98:y:2022:i:4:p:537-559

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