IDEAS home Printed from https://ideas.repec.org/a/kap/jrisku/v33y2006i1p117-130.html
   My bibliography  Save this article

Planning for natural disasters in a stochastic world

Author

Listed:
  • Lester Lave
  • Jay Apt

Abstract

We examine the risks and management of natural disasters. A benefit-cost framework focuses attention on (1) designing control structures, such as dams and levees, and mitigation policies, such as construction standards, to protect lives and property against small and medium, rather than large sized natural disasters; and (2) warning and evacuation to save lives for large natural disasters. Providing information rather than command solutions generally enhances social benefits, if people understand the risks and bear the expected costs. Requiring actuarially fair insurance simultaneously provides information and has individuals bear the expected costs. Copyright Springer Science + Business Media, LLC 2006

Suggested Citation

  • Lester Lave & Jay Apt, 2006. "Planning for natural disasters in a stochastic world," Journal of Risk and Uncertainty, Springer, vol. 33(1), pages 117-130, September.
    • Handle: RePEc:kap:jrisku:v:33:y:2006:i:1:p:117-130
    DOI: 10.1007/s11166-006-0174-9
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11166-006-0174-9
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11166-006-0174-9?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kunreuther, Howard, 1996. "Mitigating Disaster Losses through Insurance," Journal of Risk and Uncertainty, Springer, vol. 12(2-3), pages 171-187, May.
    2. Baruch Fischhoff, 1995. "Risk Perception and Communication Unplugged: Twenty Years of Process," Risk Analysis, John Wiley & Sons, vol. 15(2), pages 137-145, April.
    3. Tamara R. Lave & Lester B. Lave, 1991. "Public Perception of the Risks of Floods: Implications for Communication," Risk Analysis, John Wiley & Sons, vol. 11(2), pages 255-267, June.
    4. Richard H. Thaler & Cass R. Sunstein, 2023. "Libertarian paternalism," Chapters, in: Cass R. Sunstein & Lucia A. Reisch (ed.), Research Handbook on Nudges and Society, chapter 1, pages 10-16, Edward Elgar Publishing.
    5. Paul R. Kleindorfer & Howard Kunreuther, 1999. "The Complementary Roles of Mitigation and Insurance in Managing Catastrophic Risks," Risk Analysis, John Wiley & Sons, vol. 19(4), pages 727-738, August.
    6. Fischhoff, Baruch, 1993. "Transaction Analysis: A Framework and an Application to Insurance Decisons," Journal of Risk and Uncertainty, Springer, vol. 7(1), pages 53-69, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adam Pel & Michiel Bliemer & Serge Hoogendoorn, 2012. "A review on travel behaviour modelling in dynamic traffic simulation models for evacuations," Transportation, Springer, vol. 39(1), pages 97-123, January.
    2. Iris Grossmann & M. Morgan, 2011. "Tropical cyclones, climate change, and scientific uncertainty: what do we know, what does it mean, and what should be done?," Climatic Change, Springer, vol. 108(3), pages 543-579, October.
    3. Raghav Gaiha & Kenneth Hill & Ganesh Thapa & Varsha S. Kulkarni, 2013. "Have natural disasters become deadlier?," Global Development Institute Working Paper Series 18113, GDI, The University of Manchester.
    4. Qin Fan & Meri Davlasheridze, 2016. "Flood Risk, Flood Mitigation, and Location Choice: Evaluating the National Flood Insurance Program's Community Rating System," Risk Analysis, John Wiley & Sons, vol. 36(6), pages 1125-1147, June.
    5. Raghav Gaiha1 & Kenneth Hill & Ganesh Thapa, 2012. "Have Natural Disasters Become Deadlier?," ASARC Working Papers 2012-03, The Australian National University, Australia South Asia Research Centre.
    6. Thomas Gries & Natasa Bilkic, 2014. "Investment under Threat of Disaster," Working Papers CIE 77, Paderborn University, CIE Center for International Economics.
    7. Yanochik Mark A. & Kumazawa Risa, 2009. "Interest Rate Manipulation, Environmental Damage, and Loss Valuation," Journal of Business Valuation and Economic Loss Analysis, De Gruyter, vol. 4(2), pages 1-14, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matthew D. Wood & Ann Bostrom & Todd Bridges & Igor Linkov, 2012. "Cognitive Mapping Tools: Review and Risk Management Needs," Risk Analysis, John Wiley & Sons, vol. 32(8), pages 1333-1348, August.
    2. Jamie K. Wardman, 2008. "The Constitution of Risk Communication in Advanced Liberal Societies," Risk Analysis, John Wiley & Sons, vol. 28(6), pages 1619-1637, December.
    3. W. J. W. Botzen & J. C. J. M. Van Den Bergh, 2008. "Insurance Against Climate Change and Flooding in the Netherlands: Present, Future, and Comparison with Other Countries," Risk Analysis, John Wiley & Sons, vol. 28(2), pages 413-426, April.
    4. Howard Kunreuther, 2006. "Disaster Mitigation and Insurance: Learning from Katrina," The ANNALS of the American Academy of Political and Social Science, , vol. 604(1), pages 208-227, March.
    5. Peter John Robinson & W. J. Wouter Botzen, 2019. "Determinants of Probability Neglect and Risk Attitudes for Disaster Risk: An Online Experimental Study of Flood Insurance Demand among Homeowners," Risk Analysis, John Wiley & Sons, vol. 39(11), pages 2514-2527, November.
    6. Annegret H. Thieken & Theresia Petrow & Heidi Kreibich & Bruno Merz, 2006. "Insurability and Mitigation of Flood Losses in Private Households in Germany," Risk Analysis, John Wiley & Sons, vol. 26(2), pages 383-395, April.
    7. Joseph E. Stiglitz, 2017. "The overselling of globalization," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 52(3), pages 129-137, July.
    8. Tasoff, Joshua & Letzler, Robert, 2014. "Everyone believes in redemption: Nudges and overoptimism in costly task completion," Journal of Economic Behavior & Organization, Elsevier, vol. 107(PA), pages 107-122.
    9. Howard Kunreuther & Erwann Michel-Kerjan, 2015. "Demand for fixed-price multi-year contracts: Experimental evidence from insurance decisions," Journal of Risk and Uncertainty, Springer, vol. 51(2), pages 171-194, October.
    10. Ross Guest, 2010. "Policy Forum: Saving for Retirement: Policy Options to Increase Retirement Saving in Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 43(3), pages 293-301, September.
    11. Asen Ivanov, 2021. "Optimal pension plan default policies when employees are biased," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(3), pages 583-596, June.
    12. Hitoshi Matsushima, 2018. "Bank Runs and Minimum Reciprocity," CIRJE F-Series CIRJE-F-1099, CIRJE, Faculty of Economics, University of Tokyo.
    13. Schnellenbach, Jan, 2012. "Nudges and norms: On the political economy of soft paternalism," European Journal of Political Economy, Elsevier, vol. 28(2), pages 266-277.
    14. Scott Duke Kominers & Alexander Teytelboym & Vincent P Crawford, 2017. "An invitation to market design," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(4), pages 541-571.
    15. Blomquist, Soren & Micheletto, Luca, 2006. "Optimal redistributive taxation when government's and agents' preferences differ," Journal of Public Economics, Elsevier, vol. 90(6-7), pages 1215-1233, August.
    16. Rebecca E. Morss & Julie L. Demuth & Ann Bostrom & Jeffrey K. Lazo & Heather Lazrus, 2015. "Flash Flood Risks and Warning Decisions: A Mental Models Study of Forecasters, Public Officials, and Media Broadcasters in Boulder, Colorado," Risk Analysis, John Wiley & Sons, vol. 35(11), pages 2009-2028, November.
    17. Johannes Abeler & Felix Marklein, 2017. "Fungibility, Labels, and Consumption," Journal of the European Economic Association, European Economic Association, vol. 15(1), pages 99-127.
    18. Melissa Matlock & Suellen Hopfer & Oladele A. Ogunseitan, 2019. "Communicating Risk for a Climate-Sensitive Disease: A Case Study of Valley Fever in Central California," IJERPH, MDPI, vol. 16(18), pages 1-15, September.
    19. Marianne Bertrand & Dean S. Karlan & Sendhil Mullainathan & Eldar Shafir & Jonathan Zinman, 2005. "What's Psychology Worth? A Field Experiment in the Consumer Credit Market," Working Papers 918, Economic Growth Center, Yale University.
    20. Damgaard, Mette Trier & Nielsen, Helena Skyt, 2018. "Nudging in education," Economics of Education Review, Elsevier, vol. 64(C), pages 313-342.

    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:kap:jrisku:v:33:y:2006:i:1:p:117-130. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.