PT  - JOURNAL ARTICLE
AU  - Borsky, Stefan
AU  - Hennighausen, Hannah
TI  - Public Flood Risk Mitigation and the Homeowner’s Insurance Demand Response
AID  - 10.3368/le.98.4.061720-0088R2
DP  - 2022 Nov 01
TA  - Land Economics
PG  - 537--559
VI  - 98
IP  - 4
4099  - http://le.uwpress.org/content/98/4/537.short
4100  - http://le.uwpress.org/content/98/4/537.full
SO  - Land Econ2022 Nov 01; 98
AB  - 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 Q54, Q58)