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 061720-0088R2
DO 10.3368/le.98.4.061720-0088R2
A1 Borsky, Stefan
A1 Hennighausen, Hannah
YR 2022
UL http://le.uwpress.org/content/early/2022/01/20/le.98.4.061720-0088R2.abstract
AB This paper 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. This paper contributes to the discussion of the efficacy of disaster risk mitigation strategies and who ultimately bears the costs of natural disasters.