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Modelling risk adaptation and mitigation behaviour under different climate change scenarios

Roy Brouwer and Marije Schaafsma
Created: 12/23/2015 - Updated: 11/03/2018

Abstract

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 levels. Material flood damage and loss of life are covered in the insurance policy experiment, while the WTAC experiment also captures the economic value of immaterial flood damage such as feelings of discomfort, fear and social disruption. The results show that WTP and WTAC are substantial, suggesting a more prominent role of external social damage costs in cost-benefit analysis of climate change and flood mitigation policies.

Published On

Tuesday, July 24, 2012

Keywords

Target Climate Changes and Impacts: 
Economics
Flooding
Type of Adaptation Action/Strategy: 
Capacity Building
Governance and Policy
Create new or enhance existing policies or regulations
Develop / implement adaptation plans