IDEAS home Printed from https://ideas.repec.org/p/ags/aaea14/169801.html
   My bibliography  Save this paper

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

Author

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
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/169801/files/Liu%20et%20al_2014_AAEA_flooding.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.169801?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Christian Huggel & Dáithí Stone & Maximilian Auffhammer & Gerrit Hansen, 2013. "Loss and damage attribution," Nature Climate Change, Nature, vol. 3(8), pages 694-696, August.
    2. Iman Mallakpour & Gabriele Villarini, 2015. "The changing nature of flooding across the central United States," Nature Climate Change, Nature, vol. 5(3), pages 250-254, March.
    3. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    4. Robert Mendelsohn & Kerry Emanuel & Shun Chonabayashi & Laura Bakkensen, 2012. "The impact of climate change on global tropical cyclone damage," Nature Climate Change, Nature, vol. 2(3), pages 205-209, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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. Jidong Wu & Ying Li & Ning Li & Peijun Shi, 2018. "Development of an Asset Value Map for Disaster Risk Assessment in China by Spatial Disaggregation Using Ancillary Remote Sensing Data," Risk Analysis, John Wiley & Sons, vol. 38(1), pages 17-30, January.
    3. Danlu Xu & Zhoubin Liu & Rui Shan & Haixiao Weng & Haoyu Zhang, 2023. "How a Grid Company Could Enter the Hydrogen Industry through a New Business Model: A Case Study in China," Sustainability, MDPI, vol. 15(5), pages 1-21, March.
    4. Bing-Chen Jhong & Jung Huang & Ching-Pin Tung, 2019. "Spatial Assessment of Climate Risk for Investigating Climate Adaptation Strategies by Evaluating Spatial-Temporal Variability of Extreme Precipitation," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 33(10), pages 3377-3400, August.
    5. 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, vol. 12(1), pages 1-14, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matteo Coronese & Francesco Lamperti & Francesca Chiaromonte & Andrea Roventini, 2018. "Natural Disaster Risk and the Distributional Dynamics of Damages," LEM Papers Series 2018/22, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    2. Hongxiu Li, 2017. "Innovation as Adaptation to Natural Disasters," Working Papers 1709, University of Waterloo, Department of Economics, revised Nov 2017.
    3. Averi Chakrabarti & Karen A Grépin & Stéphane Helleringer, 2019. "The impact of supplementary immunization activities on routine vaccination coverage: An instrumental variable analysis in five low-income countries," PLOS ONE, Public Library of Science, vol. 14(2), pages 1-11, February.
    4. Harold Alderman & John Hoddinott & Bill Kinsey, 2006. "Long term consequences of early childhood malnutrition," Oxford Economic Papers, Oxford University Press, vol. 58(3), pages 450-474, July.
    5. Germán Bet & Cecilia Peluffo, 2023. "Democracy, commodity price booms, and infant mortality," Empirical Economics, Springer, vol. 64(1), pages 153-193, January.
    6. Yashar Tarverdi & Anu Rammohan, 2017. "On the role of governance and health aid on child mortality: a cross-country analysis," Applied Economics, Taylor & Francis Journals, vol. 49(9), pages 845-859, February.
    7. Na Li & Richard J. Vyn & Ken McEwan, 2016. "To Invest or Sell? The Impacts of Ontario’s Greenbelt on Farm Exit and Investment Decisions," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(3), pages 389-412.
    8. Jesus Ferreiro & Carmen Gomez, 2022. "Employment protection, employment and unemployment rates in European Union countries during the Great Recession," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 25(3), pages 240-258, July.
    9. Huh, Yesol & Kim, You Suk, 2023. "Cheapest-to-deliver pricing, optimal MBS securitization, and welfare implications," Journal of Financial Economics, Elsevier, vol. 150(1), pages 68-93.
    10. Peter John Robinson & W. J. Wouter Botzen, 2022. "Setting descriptive norm nudges to promote demand for insurance against increasing climate change risk," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 47(1), pages 27-49, January.
    11. Robert Moffitt & John Abowd & Christopher Bollinger & Michael Carr & Charles Hokayem & Kevin McKinney & Emily Wiemers & Sisi Zhang & James Ziliak, 2022. "Reconciling Trends in U.S. Male Earnings Volatility: Results from Survey and Administrative Data," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 41(1), pages 1-11, December.
    12. Ji Yan & Sally Brocksen, 2013. "Adolescent risk perception, substance use, and educational attainment," Journal of Risk Research, Taylor & Francis Journals, vol. 16(8), pages 1037-1055, September.
    13. Sènakpon Fidèle A. Dedehouanou & Luca Tiberti & Hilaire G. Houeninvo & Djohodo Inès Monwanou, 2019. "Working while studying: Employment premium or penalty for youth in Benin?," Working Papers PMMA 2019-03, PEP-PMMA.
    14. Mengyuan Zhou, 2022. "Does the Source of Inheritance Matter in Bequest Attitudes? Evidence from Japan," Journal of Family and Economic Issues, Springer, vol. 43(4), pages 867-887, December.
    15. Vuong, Nguyen & Chen, Xuan, 2018. "The Economic Returns to Communist Party Membership: Evidence from the Vietnamese Labor Market," 2018 Annual Meeting, August 5-7, Washington, D.C. 274121, Agricultural and Applied Economics Association.
    16. Sandra Müllbacher & Wolfgang Nagl, 2017. "Labour supply in Austria: an assessment of recent developments and the effects of a tax reform," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 44(3), pages 465-486, August.
    17. Campbell, Randall C. & Nagel, Gregory L., 2016. "Private information and limitations of Heckman's estimator in banking and corporate finance research," Journal of Empirical Finance, Elsevier, vol. 37(C), pages 186-195.
    18. Giuliani, Elisa & Martinelli, Arianna & Rabellotti, Roberta, 2016. "Is Co-Invention Expediting Technological Catch Up? A Study of Collaboration between Emerging Country Firms and EU Inventors," World Development, Elsevier, vol. 77(C), pages 192-205.
    19. Maurice Mutisya & Moses W. Ngware & Caroline W. Kabiru & Ngianga-bakwin Kandala, 2016. "The effect of education on household food security in two informal urban settlements in Kenya: a longitudinal analysis," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(4), pages 743-756, August.
    20. Kupfer, David & Avellar, Ana Paula, 2011. "Innovation and cooperation: evidence from the Brazilian innovation survey," Documentos de Proyectos 3900, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aaea14:169801. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.