IDEAS home Printed from https://ideas.repec.org/a/spr/nathaz/v103y2020i1d10.1007_s11069-020-03990-1.html
   My bibliography  Save this article

Socioeconomic implications of national flood insurance policy reform and flood insurance rate map revisions

Author

Listed:
  • Tim Frazier

    (Georgetown University)

  • Elizabeth E. Boyden

    (Georgetown University)

  • Erik Wood

    (Georgetown University)

Abstract

Flooding exacerbated by climate change has resulted in more mandatory community participation in the Federal Emergency Management Agency (FEMA) National Flood Insurance Program (NFIP). The purpose of this research is social regulatory floodplain criteria that may have an impact on various socioeconomic factors at the county and sub-county level. Updated mapping can result in widespread changes to the NFIP Special Flood Hazard Area, while no socioeconomic vulnerability assessments are completed before changes in risk designation or subsidy elimination occurs. These changes can result in additional compulsory flood insurance policies, heightened policy costs, and ultimately produce socioeconomic barriers for lower-income residents. The objectives include demonstrating the potential nationwide implications of increasing community risk with these changes to national policy through a case study from Ada County, Idaho where FEMA began updating the floodplain maps in 2015. Ada County was chosen for being reflective of other communities that may be suffering similar impacts from NFIP policy. A sequential explanatory mixed-methods approach was employed using semi-structured interviews, spatial analysis, and the Spatially Explicit Resilience-Vulnerability (SERV) model to assess potential community impacts. Results indicate increased vulnerability in the revised floodplain. Total annual sales volume, employee numbers, industry sectors, and overall community vulnerability are higher in the revised floodplain. Interviews with community leaders corroborated these results. This case study provides a foundation for further research on the impacts of flood insurance on communities across the USA while discussing the social injustice of a national program that is likely promoting the upward distribution of wealth county by county.

Suggested Citation

  • Tim Frazier & Elizabeth E. Boyden & Erik Wood, 2020. "Socioeconomic implications of national flood insurance policy reform and flood insurance rate map revisions," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 103(1), pages 329-346, August.
    • Handle: RePEc:spr:nathaz:v:103:y:2020:i:1:d:10.1007_s11069-020-03990-1
    DOI: 10.1007/s11069-020-03990-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11069-020-03990-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11069-020-03990-1?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. William H. Rogers & William Winter, 2009. "The Impact of Foreclosures on Neighboring Housing Sales," Journal of Real Estate Research, American Real Estate Society, vol. 31(4), pages 455-480.
    2. Okmyung Bin & Jamie Brown Kruse & Craig E. Landry, 2008. "Flood Hazards, Insurance Rates, and Amenities: Evidence From the Coastal Housing Market," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 75(1), pages 63-82, March.
    3. Sarah Pralle, 2019. "Drawing lines: FEMA and the politics of mapping flood zones," Climatic Change, Springer, vol. 152(2), pages 227-237, January.
    4. Defourny, Jacques & Thorbecke, Erik, 1984. "Structural Path Analysis and Multiplier Decomposition within a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 94(373), pages 111-136, March.
    5. Ian Burton & Saleemul Huq & Bo Lim & Olga Pilifosova & Emma Lisa Schipper, 2002. "From impacts assessment to adaptation priorities: the shaping of adaptation policy," Climate Policy, Taylor & Francis Journals, vol. 2(2-3), pages 145-159, September.
    6. Susan L. Cutter & Bryan J. Boruff & W. Lynn Shirley, 2003. "Social Vulnerability to Environmental Hazards," Social Science Quarterly, Southwestern Social Science Association, vol. 84(2), pages 242-261, June.
    7. Neelke Doorn, 2015. "The Blind Spot in Risk Ethics: Managing Natural Hazards," Risk Analysis, John Wiley & Sons, vol. 35(3), pages 354-360, March.
    8. W. Neil Adger & Tara Quinn & Irene Lorenzoni & Conor Murphy & John Sweeney, 2013. "Changing social contracts in climate-change adaptation," Nature Climate Change, Nature, vol. 3(4), pages 330-333, April.
    9. Okmyung Biny & Stephen Polasky, 2004. "Effects of Flood Hazards on Property Values: Evidence Before and After Hurricane Floyd," Land Economics, University of Wisconsin Press, vol. 80(4).
    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. Yi Chen & Zhicong Ye & Hui Liu & Ruishan Chen & Zhenhuan Liu & Hui Liu, 2021. "A GIS-Based Approach for Flood Risk Zoning by Combining Social Vulnerability and Flood Susceptibility: A Case Study of Nanjing, China," IJERPH, MDPI, vol. 18(21), pages 1-17, November.

    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. Kousky, Carolyn, 2014. "Informing climate adaptation: A review of the economic costs of natural disasters," Energy Economics, Elsevier, vol. 46(C), pages 576-592.
    2. Daniel Felsenstein & Michal Lichter, 2014. "Social and economic vulnerability of coastal communities to sea-level rise and extreme flooding," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 71(1), pages 463-491, March.
    3. Trond G. Husby & Elco E. Koks, 2017. "Household migration in disaster impact analysis: incorporating behavioural responses to risk," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 87(1), pages 287-305, May.
    4. Allan Beltrán & David Maddison & Robert J. R. Elliott, 2018. "Assessing the Economic Benefits of Flood Defenses: A Repeat‐Sales Approach," Risk Analysis, John Wiley & Sons, vol. 38(11), pages 2340-2367, November.
    5. Mutlu, Asli & Roy, Debraj & Filatova, Tatiana, 2023. "Capitalized value of evolving flood risks discount and nature-based solution premiums on property prices," Ecological Economics, Elsevier, vol. 205(C).
    6. Daniel, Vanessa E. & Florax, Raymond J.G.M. & Rietveld, Piet, 2009. "Flooding risk and housing values: An economic assessment of environmental hazard," Ecological Economics, Elsevier, vol. 69(2), pages 355-365, December.
    7. Ella Furness & Harry Nelson, 2016. "Are human values and community participation key to climate adaptation? The case of community forest organisations in British Columbia," Climatic Change, Springer, vol. 135(2), pages 243-259, March.
    8. José Armando Cobián Álvarez & Budy P. Resosudarmo, 2019. "The cost of floods in developing countries’ megacities: a hedonic price analysis of the Jakarta housing market, Indonesia," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 21(4), pages 555-577, October.
    9. Meri Davlasheridze & Qing Miao, 2021. "Natural disasters, public housing, and the role of disaster aid," Journal of Regional Science, Wiley Blackwell, vol. 61(5), pages 1113-1135, November.
    10. Graff Zivin, Joshua & Liao, Yanjun & Panassié, Yann, 2023. "How hurricanes sweep up housing markets: Evidence from Florida," Journal of Environmental Economics and Management, Elsevier, vol. 118(C).
    11. Donadelli, M. & Jüppner, M. & Paradiso, A. & Ghisletti, M., 2020. "Tornado activity, house prices, and stock returns," The North American Journal of Economics and Finance, Elsevier, vol. 52(C).
    12. Athanasios Votsis & Adriaan Perrels, 2016. "Housing Prices and the Public Disclosure of Flood Risk: A Difference-in-Differences Analysis in Finland," The Journal of Real Estate Finance and Economics, Springer, vol. 53(4), pages 450-471, November.
    13. Koen Koning & Tatiana Filatova & Okmyung Bin, 2018. "Improved Methods for Predicting Property Prices in Hazard Prone Dynamic Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 69(2), pages 247-263, February.
    14. James R. Meldrum, 2016. "Floodplain Price Impacts by Property Type in Boulder County, Colorado: Condominiums Versus Standalone Properties," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(4), pages 725-750, August.
    15. Robert J. Johnston & Klaus Moeltner, 2019. "Special Flood Hazard Effects on Coastal and Interior Home Values: One Size Does Not Fit All," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(1), pages 181-210, September.
    16. Daniel R. Petrolia & Craig E. Landry & Keith H. Coble, 2013. "Risk Preferences, Risk Perceptions, and Flood Insurance," Land Economics, University of Wisconsin Press, vol. 89(2), pages 227-245.
    17. 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.
    18. Koen de Koning & Tatiana Filatova & Okmyung Bin, 2019. "Capitalization of Flood Insurance and Risk Perceptions in Housing Prices: An Empirical Agent‐Based Model Approach," Southern Economic Journal, John Wiley & Sons, vol. 85(4), pages 1159-1179, April.
    19. Netusil, Noelwah R. & Moeltner, Klaus & Jarrad, Maya, 2019. "Floodplain designation and property sale prices in an urban watershed," Land Use Policy, Elsevier, vol. 88(C).
    20. Ruchi Avtar & Kristian S. Blickle & Rajashri Chakrabarti & Janavi Janakiraman & Maxim L. Pinkovskiy, 2023. "Understanding the Linkages between Climate Change and Inequality in the United States," Economic Policy Review, Federal Reserve Bank of New York, vol. 29(1), pages 1-39, June.

    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:spr:nathaz:v:103:y:2020:i:1:d:10.1007_s11069-020-03990-1. 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.