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Willingness to Pay for Hurricane-Resistant Home Improvement Programs: a Choice Experiment in Northeastern and Mid-Atlantic United States

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  • William F. Vásquez

    (Fairfield University)

  • Pallab Mozumder

    (Florida International University)

Abstract

We conducted a choice experiment to investigate household preferences for a home improvement program that would make housing structures more resistant to hurricanes in Northeastern and Mid-Atlantic United States. The experimental design included four attributes with varying levels: certified home inspection, matching grant for home improvements, conditional insurance premium discount, and program fee. Respondents’ choices were analyzed using scale-heterogeneity multinomial logit models in order to control for respondents’ behavioral heterogeneity. Findings indicate that households would value a program that provides incentives in the form of matching grants for hurricane-resistant home improvements and conditional insurance discounts. Policy implications are discussed.

Suggested Citation

  • William F. Vásquez & Pallab Mozumder, 2017. "Willingness to Pay for Hurricane-Resistant Home Improvement Programs: a Choice Experiment in Northeastern and Mid-Atlantic United States," Economics of Disasters and Climate Change, Springer, vol. 1(3), pages 263-276, October.
    • Handle: RePEc:spr:ediscc:v:1:y:2017:i:3:d:10.1007_s41885-017-0016-z
    DOI: 10.1007/s41885-017-0016-z
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    Cited by:

    1. Ilan Noy & Shunsuke Managi & Stephane Hallegatte, 2018. "Economics of Disasters and Climate Change – The Journal’s First Year," Economics of Disasters and Climate Change, Springer, vol. 2(1), pages 1-3, April.
    2. Tanvir Pavel & Pallab Mozumder, 2019. "Household Preferences for Managing Coastal Vulnerability: State vs. Federal Adaptation Fund," Economics of Disasters and Climate Change, Springer, vol. 3(3), pages 281-304, October.

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