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Impacts of Flooding and Flood Preparedness on Subjective Well-Being: A Monetisation of the Tangible and Intangible Impacts

Author

Listed:
  • Paul Hudson

    (Potsdam University)

  • W. J. Wouter Botzen

    (VU University Amsterdam
    Utrecht University)

  • Jennifer Poussin

    (VU University Amsterdam)

  • Jeroen C. J. H. Aerts

    (VU University Amsterdam)

Abstract

Flood disasters severely impact human subjective well-being (SWB). Nevertheless, few studies have examined the influence of flood events on individual well-being and how such impacts may be limited by flood protection measures. This study estimates the long term impacts on individual subjective well-being of flood experiences, individual subjective flood risk perceptions, and household flood preparedness decisions. These effects are monetised and placed in context through a comparison with impacts of other adverse events on well-being. We collected data from households in flood-prone areas in France. The results indicate that experiencing a flood has a large negative impact on subjective well-being that is incompletely attenuated over time. Moreover, individuals do not need to be directly affected by floods to suffer SWB losses since subjective well-being is lower for those who expect their flood risk to increase or who have seen a neighbour being flooded. Floodplain inhabitants who prepared for flooding by elevating their home have a higher subjective well-being. A monetisation of the aforementioned well-being impacts shows that a flood requires €150,000 in immediate compensation to attenuate SWB losses. The decomposition of the monetised impacts of flood experience into tangible losses and intangible effects on SWB shows that intangible effects are about twice as large as the tangible direct monetary flood losses. Investments in flood protection infrastructure may be under funded if the intangible SWB benefits of flood protection are not taken into account.

Suggested Citation

  • Paul Hudson & W. J. Wouter Botzen & Jennifer Poussin & Jeroen C. J. H. Aerts, 2019. "Impacts of Flooding and Flood Preparedness on Subjective Well-Being: A Monetisation of the Tangible and Intangible Impacts," Journal of Happiness Studies, Springer, vol. 20(2), pages 665-682, February.
    • Handle: RePEc:spr:jhappi:v:20:y:2019:i:2:d:10.1007_s10902-017-9916-4
    DOI: 10.1007/s10902-017-9916-4
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    2. Sunbin Yoo & Junya Kumagai & Yuta Kawabata & Alexander Ryota Keeley & Shunsuke Managi, 2022. "Insuring Well-Being: Psychological Adaptation to Disasters," Economics of Disasters and Climate Change, Springer, vol. 6(3), pages 471-494, November.
    3. Berenger Djoumessi Tiague, 2023. "Floods, Agricultural Production, and Household Welfare: Evidence from Tanzania," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(2), pages 341-384, June.
    4. Emmanuel Apergis & Nicholas Apergis, 2021. "The impact of COVID-19 on economic growth: evidence from a Bayesian Panel Vector Autoregressive (BPVAR) model," Applied Economics, Taylor & Francis Journals, vol. 53(58), pages 6739-6751, December.
    5. Nicola Pontarollo & Mercy Orellana & Joselin Segovia, 2020. "The Determinants of Subjective Well-Being in a Developing Country: The Ecuadorian Case," Journal of Happiness Studies, Springer, vol. 21(8), pages 3007-3035, December.
    6. Marina Bravi & Marta Bottero & Federico Dell’Anna, 2024. "An Application of the Life Satisfaction Approach (LSA) to Value the Land Consumption and Ecosystem Services," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2988-3013, March.
    7. Gauri Sreekumar & Sabuj Kumar Mandal, 2024. "Impact of Social Connections on Flood-induced Migration Among Rural Agricultural Households: Empirical Evidence from India," Economics of Disasters and Climate Change, Springer, vol. 8(3), pages 513-539, November.
    8. Hudson, Paul & Raška, Pavel & Macháč, Jan & Slavíková, Lenka, 2022. "Balancing the interaction between urban regeneration and flood risk management – A cost benefit approach in Ústí nad Labem," Land Use Policy, Elsevier, vol. 120(C).
    9. Nicholas Gunby & Tom Coupé, 2023. "Weather-Related Home Damage and Subjective Well-Being," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(2), pages 409-438, February.
    10. Tovar Reaños, Miguel A., 2021. "Floods, flood policies and changes in welfare and inequality: Evidence from Germany," Ecological Economics, Elsevier, vol. 180(C).
    11. YODO Masato & UCHIDA Atsuhiko, 2022. "How Much Is It Worth Not Being Alone? An empirical evaluation of social support using the life satisfaction approach in Japan," Discussion papers 22108, Research Institute of Economy, Trade and Industry (RIETI).

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