The main objective of this study is to simulate household choice behavior under varying climate change scenarios using choice experiments. Economic welfare measures are derived for society’s willingness to pay (WTP) to reduce climate change induced flood risks through private insurance and willingness to accept compensation (WTAC) for controlled flooding under varying future risk exposure level...

SUPPLEMENTARY INFORMATION: The Federal Emergency Management Agency (FEMA) publishes proposed determinations of Base (1% annualchance) Flood Elevations (BFEs) and modified BFEs for communities participating in the National Flood Insurance Program (NFIP), in accordance with section 110 of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4104, and 44 CFR 67.4(a). These proposed BFEs and modifi...

This research examines changes in residential built-environment flood exposure within the current boundaries of the Atlanta, Georgia metropolitan statistical area, by estimating the number of housing units that are located within the floodplains of the region. Housing unit data at the block level from the 1990 to 2010 decennial censuses are used to estimate housing unit exposure to floods using...

Many people do not take up desaster insurance for their houses even though premiums are subsidized. A well-known example is flood insurance. At the same time they buy highly loaded insurance contracts for modest risk. Examples here are extended warranties or cellular phone insurance. This paper shows that unlike traditional decision theory prospect theory can explain this evidence provided the ...

This study uses a hedonic property price function to estimate the effects of flood hazards on residential property values. The study utilizes data from over 8,000 single-family residential home sales in Pitt County, North Carolina between 1992 and 2002. This area experienced significant flooding from Hurricane Floyd in September 1999. Results show that a house located within a floodplain has a ...

Residents of south Louisiana face a range of increasing, climate-related flood exposure risks that could be reduced through local floodplain management and hazard mitigation planning. A major incentive for community planning to reduce exposure to flood risks is offered by the Community Rating System (CRS) of the National Flood Insurance Program (NFIP). The NFIP encourages local collective actio...

A basic proposition of agency theory is that output-based performance incentives encourage greater effort. However, studies find that incentive schemes can distort effort if rewards for performance are discrete or nonlinear. The Federal Emergency Management Agency's (FEMA) Community Rating System (CRS) is a flood mitigation program with a nonlinear incentive design. Under this program, localiti...