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Future Property Damage from Flooding – Sensitivities to Economy and Climate Change

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Listed:
  • Liu, Jing
  • Hertel, Thomas
  • Delgado, Michael S.
  • Ashfaq, Moetasim
  • Diffenbaugh, Noah

Abstract

Using a unique dataset for Indiana counties during the period 1995-2012, we estimate the effects of flood hazard, asset exposure, and social vulnerability on property damage. This relationship then is combined with the expected level of future flood risks to project property damage from flooding in 2030 under various scenarios. We compare these scenario projections to identify which risk management strategy offers the greatest potential to mitigate flooding loss. Results show that by 2030, county level flooding hazard measured by extreme flow volume and frequency will increase by an average of 16.2% and 7.4%, respectively. The total increase in property damages projected under different model specifications range from 13.3% to 20.8%. Across models future damages consistently exhibit the highest sensitivity to future increases in asset exposure, reinforcing the importance of non-structural measures in managing floodplain development.

Suggested Citation

  • Liu, Jing & Hertel, Thomas & Delgado, Michael S. & Ashfaq, Moetasim & Diffenbaugh, Noah, 2014. "Future Property Damage from Flooding – Sensitivities to Economy and Climate Change," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169801, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea14:169801
    DOI: 10.22004/ag.econ.169801
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    References listed on IDEAS

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    1. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, February.
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    Cited by:

    1. Xiao-Chen Yuan & Xun Sun & Upmanu Lall & Zhi-Fu Mi & Jun He & Yi-Ming Wei, 2016. "China’s socioeconomic risk from extreme events in a changing climate: a hierarchical Bayesian model," Climatic Change, Springer, vol. 139(2), pages 169-181, November.
    2. Wenhui Liu & Jidong Wu & Rumei Tang & Mengqi Ye & Jing Yang, 2020. "Daily Precipitation Threshold for Rainstorm and Flood Disaster in the Mainland of China: An Economic Loss Perspective," Sustainability, MDPI, Open Access Journal, vol. 12(1), pages 1-14, January.

    More about this item

    Keywords

    Environmental Economics and Policy;

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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