Monetary valuation of insurance against flood risk under climate change

W. J. Wouter Botzen, Jeroen C.J.M. Van Den Bergh

Research output: Contribution to journalArticleResearchpeer-review

77 Citations (Scopus)

Abstract

Climate change is projected to increase the risk of natural disasters, such as floods and storms, in certain regions. This is likely to raise the demand for natural disaster insurance. We present a stated preference survey using choice modeling with mixed logit estimation methods in order to examine the effects of climate change and the availability of government compensation on the demand for flood insurance by Dutch homeowners. Currently, no private insurance against flood damage is offered in the Netherlands. The results indicate that there are opportunities for the development of a flood insurance market. © (2012) by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
Original languageEnglish
Pages (from-to)1005-1026
JournalInternational Economic Review
Volume53
Issue number3
DOIs
Publication statusPublished - 1 Aug 2012

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