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Heading for the Hills? Effects of Community Flood Management on Local Adaptation to Flood Risks

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  • Douglas S. Noonan
  • Xian Liu

Abstract

The Community Rating System (CRS) program was implemented by the U.S. Federal Emergency Management Agency (FEMA) in 1990 as an optional program to encourage communities to voluntarily engage in flood mitigation initiatives. This article uses national census tract‐level data from 1980 to 2010 to estimate whether CRS participation and flood risk affect a community's local patterns of population change. We employ an instrumental‐variables strategy to address the potential endogeneity of CRS participation, based on community‐scale demographic factors that predict when a tract's host community joins the CRS. The results find significant effects of the CRS program and flood risk on population change. Taken together, the findings point to greater propensity for community‐scale flood management in areas with more newcomers and programs such as CRS stabilizing population, though not especially in flood‐prone areas. We observe the CRS neither displacing population toward lower‐risk areas nor attracting more people to flood‐prone areas.

Suggested Citation

  • 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.
    • Handle: RePEc:wly:soecon:v:86:y:2019:i:2:p:800-822
    DOI: 10.1002/soej.12340
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    1. Eugene Frimpong & Daniel R Petrolia & Ardian Harri & John H. Cartwright, 2020. "Flood Insurance and Claims: The Impact of the Community Rating System," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 245-262, June.
    2. Liu, Xian & Noonan, Douglas, 2022. "Building underwater: Effects of community-scale flood management on housing development," Journal of Housing Economics, Elsevier, vol. 57(C).

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