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Reforming Canada's Disaster Assistance Programs

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Abstract

Canada's disaster financial assistance (DFA) system provides benefits through the provinces, subsidized by the federal DFA Arrangements (DFAA) above damage thresholds that were tripled in 2015. Disaster incidence and severity is increasing. Flooding is most costly, then storms and wildfire. The need for policy changes is analyzed, with particular attention to flooding. It is argued that flood coverage should be required under home insurance, subsidized in high-risk areas at rates declining over time to encourage self-protection or relocation. Buyouts should be offered and made mandatory in the highest risk areas. Further DFAA assistance reductions should be considered, to give stronger incentives for mitigation of all disasters.
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  • James B. Davies, 2020. "Reforming Canada's Disaster Assistance Programs," University of Western Ontario, Departmental Research Report Series 20203, University of Western Ontario, Department of Economics.
    • Handle: RePEc:uwo:uwowop:20203
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    File URL: https://ir.lib.uwo.ca/cgi/viewcontent.cgi?article=1834&context=economicsresrpt
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    1. Greg Oulahen & Linda Mortsch & Kathy Tang & Deborah Harford, 2015. "Unequal Vulnerability to Flood Hazards: “Ground Truthing” a Social Vulnerability Index of Five Municipalities in Metro Vancouver, Canada," Annals of the American Association of Geographers, Taylor & Francis Journals, vol. 105(3), pages 473-495, May.
    2. Bev Dahlby & Ergete Ferede, 2011. "What Does it Cost Society to Raise a Dollar of Tax Revenue? The Marginal Cost of Public Funds," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 324, March.
    3. Bev Dahlby, 2008. "The Marginal Cost of Public Funds: Theory and Applications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262042509, December.
    4. Greg Oulahen & Dan Shrubsole & Gordon McBean, 2015. "Determinants of residential vulnerability to flood hazards in Metro Vancouver, Canada," 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. 78(2), pages 939-956, September.
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