Excess vulnerability from subsidized flood insurance

We calculate there are 8.1% more houses in Allegheny County, PA (Pittsburgh) due to flood insurance subsidies. Conversely, if/when National Flood Insurance Program (NFIP) premiums rise by 50% to equal expected damages, property values will decrease by 8.8% in the short-term, with about half of that recuperated in the long run (4.7%) as quality-adjusted housing stocks contract by 7.5% over decades. This analysis informs community planning and current NFIP revisions that strive to balance solvency and social consequences. Furthermore, our extension of Poterba's (1984) dynamic user-cost of housing model can be used in integrated assessment models of climate change adaptation.

Electronic version of an article published as Climate Change Economics, Volume 12, No. 01 https://doi.org/10.1142/S2010007820500128 © [copyright World Scientific Publishing Company] https://www.worldscientific.com/worldscinet/cce



Work Title Excess vulnerability from subsidized flood insurance
Subtitle Housing market adaptation when premiums equal expected flood damage
Open Access
  1. Scott J. Colby
  2. Katherine Y. Zipp
License In Copyright (Rights Reserved)
Work Type Article
  1. Climate Change Economics
Publication Date February 1, 2021
Publisher Identifier (DOI)
  1. https://doi.org/10.1142/S2010007820500128
Deposited November 15, 2021




This resource is currently not in any collection.

Work History

Version 1

  • Created
  • Added Colby_and_Zipp_2020__2_.pdf
  • Added Creator Scott J. Colby
  • Added Creator Katherine Y. Zipp
  • Published
  • Updated
  • Updated