What is the Economics of Wind Hazard Mitigation?
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Pataya Scott
Abstract
Tornadoes, hurricanes, and other extreme winds cause deaths, injuries, and millions, if not billions, of dollars in damages every year in the United States. Mitigation is necessary to reduce the loss of life, anxiety and suffering, and economic losses. But how much are people willing to invest in their peace of mind? Policy makers typically use the range of $1 million to $10 million per life saved to determine whether a policy that would save lives should be implemented. Individuals have shown that they are willing to pay more for homes with upgrades for mitigation and safety even though they would have no insurance incentive and it is likely that the added cost only affords them peace of mind.
References
Bommier, Antoine, and Bertrand Villeneuve. 2004. “Risk Aversion and the Value of Risk to Life.” CESifo Working Paper No. 1267.Suche in Google Scholar
Merrell, David, Kevin M. Simmons, and Daniel Sutter. 2005. “The Determinants of Tornado Casualties and the Benefits of Tornado Shelters.” Land Economics 81 (1):87–99.10.3368/le.81.1.87Suche in Google Scholar
Simmons, Kevin M., and Daniel Sutter. 2006. “Direct Estimation of the Cost Effectiveness of Tornado Shelters.” Risk Analysis 26 (4):945–54.10.1111/j.1539-6924.2006.00790.xSuche in Google Scholar
Simmons, Kevin M., Jamie Brown Kruse, and Douglas A. Smith. 2002. “Valuing Mitigation: Real Estate market Response to Hurricane Loss Reduction Measures.” Southern Economic Journal 68 (3):660–71.Suche in Google Scholar
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©2016 by De Gruyter
Artikel in diesem Heft
- Frontmatter
- Editorial
- Introduction to Symposium on “The Power of Wind: Energy and Natural Disasters”
- Research articles
- Economic Impact of Wind Energy Development in Illinois
- What is the Economics of Wind Hazard Mitigation?
- Windstorm Price Effects on Construction Materials
- Financial Hedging the Risk of Hurricanes
- State of Knowledge of Economic Value of Current and Improved Hurricane Forecasts
Artikel in diesem Heft
- Frontmatter
- Editorial
- Introduction to Symposium on “The Power of Wind: Energy and Natural Disasters”
- Research articles
- Economic Impact of Wind Energy Development in Illinois
- What is the Economics of Wind Hazard Mitigation?
- Windstorm Price Effects on Construction Materials
- Financial Hedging the Risk of Hurricanes
- State of Knowledge of Economic Value of Current and Improved Hurricane Forecasts
