Natural and Industrial Disasters : Land Use and Insurance
AbstractUrbanization in exposed areas increases the cost of disasters. For industrial risks, potential victims raise ï¬rmsâ liabilities. For natural risks, overexposure by some undermines mutualization. Land use policy (particularly exclusion zones) and insurance shape urbanization, but their efficiency is limited by hazard-map precision. Map-based discrimination being politically sensitive, we identify an operation of map redrawing that increases the welfare of all. Climate change and population growth increase risk. We exhibit realistic cases where exclusion zones shrink as risk rises. We disentangle the competing eï¬ects at play. Results are established for alternative distributions of bargaining power between households, mayor and ï¬rm.
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Bibliographic InfoPaper provided by Centre de Recherche en Economie et Statistique in its series Working Papers with number 2011-32.
Date of creation: Dec 2011
Date of revision:
natural disasters; industrial disasters; insurance; land use regulation; hazard maps;
Other versions of this item:
- Grislain-Letrémy, Céline & Villeneuve, Bertrand, 2011. "Natural and Industrial Disasters : Land Use and Insurance," Economics Papers from University Paris Dauphine 123456789/7845, Paris Dauphine University.
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
- R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
This paper has been announced in the following NEP Reports:
- NEP-AGR-2012-05-22 (Agricultural Economics)
- NEP-ALL-2012-05-22 (All new papers)
- NEP-ENV-2012-05-22 (Environmental Economics)
- NEP-IAS-2012-05-22 (Insurance Economics)
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