Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/rff/dpaper/dp-24-08.html
   My bibliography  Save this paper

Community Responses to Flooding in Risk Mitigation Actions: Evidence from the Community Rating System

Author

Listed:
  • Liao, Yanjun (Penny)

    (Resources for the Future)

  • Sølvsten, Simon
  • Whitlock, Zachary

    (Resources for the Future)

Abstract
This paper studies the impact of disaster experiences on communities’ engagement in risk mitigation actions, focusing on flooding in the United States. We measure risk mitigation actions using communities’ scores in the Community Rating System, an incentive program that scores flood preparedness and mitigation activities and rewards communities with flood insurance premium discounts. Leveraging a panel of communities from 1998 to 2019, we find a significant increase in risk mitigation activities following flood events, in both participation rates and intensity of actions. The effects continue to increase up to 10 years. Communities with greater capacity, particularly those in urban areas, exhibit a much stronger response. The findings highlight the adaptive capacity of communities but also raise several concerns regarding the inefficiency of disaster-driven responses and inequitable outcomes across communities.

Suggested Citation

  • Liao, Yanjun (Penny) & Sølvsten, Simon & Whitlock, Zachary, 2024. "Community Responses to Flooding in Risk Mitigation Actions: Evidence from the Community Rating System," RFF Working Paper Series 24-08, Resources for the Future.
    • Handle: RePEc:rff:dpaper:dp-24-08
    as

    Download full text from publisher

    File URL: https://www.rff.org/documents/4500/WP_24-08.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Qin Fan & Meri Davlasheridze, 2016. "Flood Risk, Flood Mitigation, and Location Choice: Evaluating the National Flood Insurance Program's Community Rating System," Risk Analysis, John Wiley & Sons, vol. 36(6), pages 1125-1147, June.
    2. Oliver E. J. Wing & William Lehman & Paul D. Bates & Christopher C. Sampson & Niall Quinn & Andrew M. Smith & Jeffrey C. Neal & Jeremy R. Porter & Carolyn Kousky, 2022. "Inequitable patterns of US flood risk in the Anthropocene," Nature Climate Change, Nature, vol. 12(2), pages 156-162, February.
    3. Stefan Borsky & Hannah Hennighausen, 2022. "Public Flood Risk Mitigation and the Homeowner’s Insurance Demand Response," Land Economics, University of Wisconsin Press, vol. 98(4), pages 537-559.
    4. Carolyn Kousky, 2017. "Disasters as Learning Experiences or Disasters as Policy Opportunities? Examining Flood Insurance Purchases after Hurricanes," Risk Analysis, John Wiley & Sons, vol. 37(3), pages 517-530, March.
    5. Teun Terpstra, 2011. "Emotions, Trust, and Perceived Risk: Affective and Cognitive Routes to Flood Preparedness Behavior," Risk Analysis, John Wiley & Sons, vol. 31(10), pages 1658-1675, October.
    6. Sammy Zahran & Samuel Brody & Wesley Highfield & Arnold Vedlitz, 2010. "Non-linear incentives, plan design, and flood mitigation: the case of the Federal Emergency Management Agency's community rating system," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 53(2), pages 219-239.
    7. Wesley Highfield & Samuel Brody & Russell Blessing, 2014. "Measuring the impact of mitigation activities on flood loss reduction at the parcel level: the case of the clear creek watershed on the upper Texas coast," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 74(2), pages 687-704, November.
    8. Davlasheridze, Meri & Fisher-Vanden, Karen & Allen Klaiber, H., 2017. "The effects of adaptation measures on hurricane induced property losses: Which FEMA investments have the highest returns?," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 93-114.
    9. Eugene Frimpong & Daniel R Petrolia & Ardian Harri & John H. Cartwright, 2020. "Flood Insurance and Claims: The Impact of the Community Rating System," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 245-262, June.
    10. Jun Rentschler & Paolo Avner & Mattia Marconcini & Rui Su & Emanuele Strano & Michalis Vousdoukas & Stéphane Hallegatte, 2023. "Global evidence of rapid urban growth in flood zones since 1985," Nature, Nature, vol. 622(7981), pages 87-92, October.
    11. Billings, Stephen B. & Gallagher, Emily A. & Ricketts, Lowell, 2022. "Let the rich be flooded: The distribution of financial aid and distress after hurricane harvey," Journal of Financial Economics, Elsevier, vol. 146(2), pages 797-819.
    12. Daniel R. Petrolia & Craig E. Landry & Keith H. Coble, 2013. "Risk Preferences, Risk Perceptions, and Flood Insurance," Land Economics, University of Wisconsin Press, vol. 89(2), pages 227-245.
    13. Carolyn Kousky & Leonard Shabman, 2017. "Policy Nook: “Federal Funding for Flood Risk Reduction in the US: Pre- or Post-Disaster?”," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(01), pages 1-11, January.
    14. Qing Miao & Michael Abrigo & Yilin Hou & Yanjun (Penny) Liao, 2023. "Extreme Weather Events and Local Fiscal Responses: Evidence from U.S. Counties," Economics of Disasters and Climate Change, Springer, vol. 7(1), pages 93-115, March.
    15. Christopher G. Burton, 2015. "A Validation of Metrics for Community Resilience to Natural Hazards and Disasters Using the Recovery from Hurricane Katrina as a Case Study," Annals of the American Association of Geographers, Taylor & Francis Journals, vol. 105(1), pages 67-86, January.
    16. Sarah E. Anderson & Ryan R. Bart & Maureen C. Kennedy & Andrew J. MacDonald & Max A. Moritz & Andrew J. Plantinga & Christina L. Tague & Matthew Wibbenmeyer, 2018. "The dangers of disaster-driven responses to climate change," Nature Climate Change, Nature, vol. 8(8), pages 651-653, August.
    17. Hans Visser & Arthur Petersen & Willem Ligtvoet, 2014. "On the relation between weather-related disaster impacts, vulnerability and climate change," Climatic Change, Springer, vol. 125(3), pages 461-477, August.
    18. Sun, Liyang & Abraham, Sarah, 2021. "Estimating dynamic treatment effects in event studies with heterogeneous treatment effects," Journal of Econometrics, Elsevier, vol. 225(2), pages 175-199.
    19. Samuel Brody & Jung Kang & Sarah Bernhardt, 2010. "Identifying factors influencing flood mitigation at the local level in Texas and Florida: the role of organizational capacity," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 52(1), pages 167-184, January.
    20. Jingyuan Li & Craig E. Landry, 2018. "Flood Risk, Local Hazard Mitigation, and the Community Rating System of the National Flood Insurance Program," Land Economics, University of Wisconsin Press, vol. 94(2), pages 175-198.
    21. Carolyn Kousky & Erwann Michel-Kerjan, 2017. "Examining Flood Insurance Claims in the United States: Six Key Findings," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 84(3), pages 819-850, September.
    22. Ajita Atreya & Susana Ferreira & Warren Kriesel, 2013. "Forgetting the Flood? An Analysis of the Flood Risk Discount over Time," Land Economics, University of Wisconsin Press, vol. 89(4), pages 577-596.
    23. Justin Gallagher, 2014. "Learning about an Infrequent Event: Evidence from Flood Insurance Take-Up in the United States," American Economic Journal: Applied Economics, American Economic Association, vol. 6(3), pages 206-233, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Xian & Noonan, Douglas, 2022. "Building underwater: Effects of community-scale flood management on housing development," Journal of Housing Economics, Elsevier, vol. 57(C).
    2. Ren, Yongwang, 2022. "The Spillover Effect of The Community Rating System," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322071, Agricultural and Applied Economics Association.
    3. Douglas S. Noonan & Xian Liu, 2019. "Heading for the Hills? Effects of Community Flood Management on Local Adaptation to Flood Risks," Southern Economic Journal, John Wiley & Sons, vol. 86(2), pages 800-822, October.
    4. Douglas S. Noonan & Abdul‐Akeem A. Sadiq, 2018. "Flood Risk Management: Exploring the Impacts of the Community Rating System Program on Poverty and Income Inequality," Risk Analysis, John Wiley & Sons, vol. 38(3), pages 489-503, March.
    5. Stefan Borsky & Hannah Hennighausen, 2022. "Public Flood Risk Mitigation and the Homeowner’s Insurance Demand Response," Land Economics, University of Wisconsin Press, vol. 98(4), pages 537-559.
    6. Mona Ahmadiani & Susana Ferreira & Craig E. Landry, 2019. "Flood Insurance and Risk Reduction: Market Penetration, Coverage, and Mitigation in Coastal North Carolina," Southern Economic Journal, John Wiley & Sons, vol. 85(4), pages 1058-1082, April.
    7. Craig E. Landry & Dylan Turner & Daniel Petrolia, 2021. "Flood Insurance Market Penetration and Expectations of Disaster Assistance," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(2), pages 357-386, June.
    8. Meri Davlasheridze & Qin Fan, 2019. "Valuing Seawall Protection in the Wake of Hurricane Ike," Economics of Disasters and Climate Change, Springer, vol. 3(3), pages 257-279, October.
    9. Justin Contat & Carrie Hopkins & Luis Mejia & Matthew Suandi, 2024. "When climate meets real estate: A survey of the literature," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 52(3), pages 618-659, May.
    10. Jenna Tyler & Abdul-Akeem Sadiq & Douglas S. Noonan, 2019. "A review of the community flood risk management literature in the USA: lessons for improving community resilience to floods," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 96(3), pages 1223-1248, April.
    11. Xu, Yilan & Huang, Yi, 2022. "Does climate change news inform flood insurance take?," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322178, Agricultural and Applied Economics Association.
    12. Meri Davlasheridze & Qing Miao, 2021. "Does post-disaster aid promote community resilience? Evidence from federal disaster programs," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 109(1), pages 63-88, October.
    13. Meri Davlasheridze & Qing Miao, 2019. "Does Governmental Assistance Affect Private Decisions to Insure? An Empirical Analysis of Flood Insurance Purchases," Land Economics, University of Wisconsin Press, vol. 95(1), pages 124-145.
    14. Hashida, Yukiko & Dundas, Steven J., 2023. "The effects of a voluntary property buyout and acquisition program on coastal housing markets: Evidence from New York," Journal of Environmental Economics and Management, Elsevier, vol. 121(C).
    15. Liao, Yanjun (Penny) & Mulder, Philip, 2021. "What's at Stake? Understanding the Role of Home Equity in Flood Insurance Demand," RFF Working Paper Series 21-25, Resources for the Future.
    16. Welsch, David M. & Winden, Matthew W. & Zimmer, David M., 2022. "The effect of flood mitigation spending on flood damage: Accounting for dynamic feedback," Ecological Economics, Elsevier, vol. 192(C).
    17. Robert J. Johnston & Klaus Moeltner, 2019. "Special Flood Hazard Effects on Coastal and Interior Home Values: One Size Does Not Fit All," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(1), pages 181-210, September.
    18. Chloe H. Lucas & Kate I. Booth & Carolina Garcia, 2021. "Insuring homes against extreme weather events: a systematic review of the research," Climatic Change, Springer, vol. 165(3), pages 1-21, April.
    19. Eugene Frimpong & Daniel R Petrolia & Ardian Harri & John H. Cartwright, 2020. "Flood Insurance and Claims: The Impact of the Community Rating System," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 245-262, June.
    20. repec:fip:fedpwp:96170 is not listed on IDEAS
    21. Qing Miao, 2019. "Are We Adapting to Floods? Evidence from Global Flooding Fatalities," Risk Analysis, John Wiley & Sons, vol. 39(6), pages 1298-1313, June.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rff:dpaper:dp-24-08. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Resources for the Future (email available below). General contact details of provider: https://edirc.repec.org/data/rffffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.