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Local capacity and resilience to flooding: community responsiveness to the community ratings system program incentives

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  • Abdul-Akeem Sadiq
  • Douglas Noonan

Abstract

To incentivize more community flood risks mitigation, the US Congress implemented the community rating system (CRS) in 1990. The CRS seeks to help communities build capacity to address flood risks and become more resilient to future flood disasters. Communities participating in CRS can reduce their flood risks and enjoy discounted premiums (up to 45 %) on federally required flood insurance commensurate with their community’s CRS score. A participant community is placed into one of the ten classes depending on its CRS score. Although previous research finds that the program’s structure creates opportunities for communities participating in CRS to respond to its incentives, no study has examined the characteristics of communities that changed their mitigation behavior due to this incentive scheme. In order to evaluate the performance of CRS and its tiered incentive structure, this study investigates the extent to which communities are responding strategically to CRS incentives and the characteristics of those communities behaving strategically. This study uses a regression discontinuity approach to compare the characteristics of communities above and below CRS class thresholds. The results show strategic behavior of communities participating in CRS. Communities with more information-based flood management activities, lower property values, lower flood risk, and lower population densities are more likely to respond strategically with respect to smaller CRS subsidies. For larger subsidies, the results indicate that CRS communities with higher property values are more likely to respond strategically to the policy incentives. The study concludes with a discussion of the implications of these results for the CRS program. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Abdul-Akeem Sadiq & Douglas Noonan, 2015. "Local capacity and resilience to flooding: community responsiveness to the community ratings system program incentives," 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 1413-1428, September.
    • Handle: RePEc:spr:nathaz:v:78:y:2015:i:2:p:1413-1428
    DOI: 10.1007/s11069-015-1776-9
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    References listed on IDEAS

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    Cited by:

    1. Pin Sun & Rebecca Entress & Jenna Tyler & Abdul-Akeem Sadiq & Douglas Noonan, 2023. "Critical public infrastructure underwater: the flood hazard profile of Florida hospitals," 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. 117(1), pages 473-489, May.
    2. Douglas S. Noonan & Xian Liu, 2019. "Heading for the Hills? Effects of Community Flood Management on Local Adaptation to Flood Risks," Southern Economic Journal, John Wiley & Sons, vol. 86(2), pages 800-822, October.
    3. Douglas S. Noonan & Abdul‐Akeem A. Sadiq, 2018. "Flood Risk Management: Exploring the Impacts of the Community Rating System Program on Poverty and Income Inequality," Risk Analysis, John Wiley & Sons, vol. 38(3), pages 489-503, March.
    4. Noonan, Douglas S. & Sadiq, Abdul-Akeem, 2019. "Community-scale Flood Risk Management: Effects of a Voluntary National Program on Migration and Development," Ecological Economics, Elsevier, vol. 157(C), pages 92-99.
    5. Meri Davlasheridze & Qing Miao, 2019. "Does Governmental Assistance Affect Private Decisions to Insure? An Empirical Analysis of Flood Insurance Purchases," Land Economics, University of Wisconsin Press, vol. 95(1), pages 124-145.
    6. Wenmin Qin & Aiwen Lin & Jian Fang & Lunche Wang & Man Li, 2017. "Spatial and temporal evolution of community resilience to natural hazards in the coastal areas of China," 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. 89(1), pages 331-349, October.

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