RT Journal Article
SR Electronic
T1 Homeowner Willingness to Pay for a Pre-flood Agreement for a Post-flood Buyout
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 560
OP 578
DO 10.3368/le.98.4.052721-0056
VO 98
IS 4
A1 Ando, Amy W.
A1 Reeser, Collin
YR 2022
UL http://le.uwpress.org/content/98/4/560.abstract
AB Homeowner buyout programs promote climate adaptation efforts by removing homes from floodplains. We estimate homeowner willingness to pay (WTP) for a novel agreement in which they precommit to relocating if a flood severely damages their home in exchange for an expedited buyout process. We find nearly all respondents identified positive WTP to enroll in this program, with average WTP about $600. Factors like flood risk and expectation of neighbors’ responses significantly affect WTP. If the pre-flood agreement is available only if the homeowner has flood insurance, only 68% of homeowners were willing to accept the agreement.