Individual preferences for reducing flood risk to near zero through elevation

Abstract

Climate change is expected to increase the frequency and intensity of natural disasters. Adaptation investments are required in order to limit the projected increase in natural disaster risks. Adaptation measures can reduce risk partially or completely eliminate risk. The literature on behavioural economics suggests that individuals rarely undertake measures that limit risk partially, while they may place a considerable value on measures that reduce risk to zero. This is studied for a case of adaptation to climate change and its effects on flood risk in the Netherlands. In particular, we examine whether households are willing to invest in elevating newly built structures when this is framed as eliminating flood risk. The results indicate that a majority of homeowners (52%) is willing to make a substantial investment of €10,000 to elevate a new house to a level that is safe to flooding. Differences between willingness to pay (WTP) for flood insurance and WTP for risk elimination through elevation indicate that individuals place a considerable value on the latter adaptation option. This study estimates that the "safety premium" which individuals place on risk elimination is approximately between €35 and €45 per month. The existence of a safety premium has Mitig Adapt Strateg Glob Change (2013)

Flash Flood Hazard Susceptibility Mapping Using Frequency Ratio and Statistical Index Methods in Coalmine Subsidence Areas

“…Farmland, orchards, and some forest classes were found in vulnerable areas, mostly in low elevation and flat. Lower elevation areas are more susceptible to flooding [45]. Slope also influenced the amount of surface runoff and infiltration, consistent with earlier findings [46].…”

“…Application of the frequency ratio model found that most flash flooding hazards are located at elevations of 150 m-422 m. Elevation class 150 m-250 m has the highest FR value of 2.52, followed by 250 m-338 m, and 338 m-422 m. Elevations higher than 506 m had the lowest frequency ratio (0.00), agreeing with earlier work that found that flooding is unlikely in high elevation regions [45]. In the case of slope, it could be seen that the classes 0 • -7 • , 7 • -15 • , and 15 • -22 • had higher FR values, followed by 34 • -39 • .…”

“…Flash flooding typically does not occur in high elevation regions [45]. The elevation of the study area is shown in Figure 4a.…”

Preface: climate change proof flood risk management

“…Mechler and Kundzewicz 2010. The topic of flood risk management practice and planning in view of global changes, as tackled in this special issue, is also germane to other papers in this journal, such as: Refsgaard et al (2013), Botzen et al (2013), Lacerda et al (2013), Lin et al (2013), and Razafindrabe et al (2014).…”

Adaptation to the Impacts of Climate Extremes in Central Europe: A Case Study in a Rural Area in the Czech Republic

“…The technical-architectural concept plays an important role in and of itself. Botzen et al [40] have conducted, for example, an economically-focused study in the Netherlands, in which they determined respondents' willingness to pay for flood insurance in comparison with their willingness to pay for measures to reduce the flood risk in the form of constructing a raised ground floor to their house. The results demonstrated that approximately 52% of respondents gave priority to a raised ground floor, thereby wishing to actually resolve the problem rather than merely paying for insurance.…”