RT Journal Article
SR Electronic
T1 Public Flood Risk Mitigation and the Homeowner’s Insurance Demand Response
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 537
OP 559
DO 10.3368/le.98.4.061720-0088R2
VO 98
IS 4
A1 Borsky, Stefan
A1 Hennighausen, Hannah
YR 2022
UL http://le.uwpress.org/content/98/4/537.abstract
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)