IDEAS home Printed from https://ideas.repec.org/a/adr/anecst/y2020i139p61-86.html
   My bibliography  Save this article

Prevention and Insurance in Cities Exposed to Natural Disaster Risks

Author

Listed:
  • Arnaud Goussebaïle

Abstract

Prevention and insurance are studied in an urban model with spatial heterogeneity due not only to commuting transport costs but also to natural disaster risks. Costly insurance and charity donation both lead to low insurance purchase. While the former leads to high prevention, the latter leads to low prevention. In the presence of charity, implementing insurance or building resilience subsidies may lead to even less prevention through higher development of risky areas. In all events, a public insurance policy with actuarially fair rates accounting for resilience investment and with full coverage requirements, along with lump-sum transfers, leads to Pareto improvement.

Suggested Citation

  • Arnaud Goussebaïle, 2020. "Prevention and Insurance in Cities Exposed to Natural Disaster Risks," Annals of Economics and Statistics, GENES, issue 139, pages 61-86.
  • Handle: RePEc:adr:anecst:y:2020:i:139:p:61-86
    DOI: 10.15609/annaeconstat2009.139.0061
    as

    Download full text from publisher

    File URL: https://www.jstor.org/stable/10.15609/annaeconstat2009.139.0061
    Download Restriction: no

    File URL: https://libkey.io/10.15609/annaeconstat2009.139.0061?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    Natural Disaster; Urbanization; Resilience; Insurance; Charity;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adr:anecst:y:2020:i:139:p:61-86. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/ensaefr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Secretariat General or Laurent Linnemer (email available below). General contact details of provider: https://edirc.repec.org/data/ensaefr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.