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The role of biases and heuristics in addressing natural disasters

In: Handbook on the Economics of Disasters

Author

Listed:
  • Howard Kunreuther
  • Wouter Botzen

Abstract

Many individuals who reside in hazard-prone areas would prefer not to think about possible natural disasters. Those at risk exhibit a set of biases that cause them to avoid undertaking protective measures. This chapter characterizes these biases and suggests ways that one can encourage individuals to not only pay attention to the impacts of future disasters but also to invest in loss reduction measures in advance of their next disaster. The chapter concludes by highlighting the importance of significantly reducing CO2 emissions and concentrations given the impact of climate change on future natural disasters.

Suggested Citation

  • Howard Kunreuther & Wouter Botzen, 2022. "The role of biases and heuristics in addressing natural disasters," Chapters, in: Mark Skidmore (ed.), Handbook on the Economics of Disasters, chapter 5, pages 72-85, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:19599_5
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