Participation in the National Flood Insurance Program: An Empirical Analysis for Coastal Properties

16 Pages Posted: 15 Sep 2004

See all articles by Warren P. Kriesel

Warren P. Kriesel

University of Georgia - Department of Agricultural & Applied Economics

Craig E. Landry

University of Georgia - Department of Agricultural & Applied Economics

Abstract

A perennial question about the National Flood Insurance Program is: how can participation be increased? An empirical analysis of individual-level data reveals that in a sample of coastal areas the participation rate is 49 percent of eligible properties. Participation responsiveness to price is inelastic, but it has been increased by the mandatory purchase requirements for mortgage borrowers. Easing conditions for participation in the program would probably not reduce flood control measures, such as seawalls, which may degrade beach conditions and coastal ecosystems.

Suggested Citation

Kriesel, Warren P. and Landry, Craig, Participation in the National Flood Insurance Program: An Empirical Analysis for Coastal Properties. Journal of Risk and Insurance, Vol. 71, No. 3, pp. 405-420, September 2004. Available at SSRN: https://ssrn.com/abstract=591541

Warren P. Kriesel (Contact Author)

University of Georgia - Department of Agricultural & Applied Economics ( email )

Athens, GA 30602-7509
United States

Craig Landry

University of Georgia - Department of Agricultural & Applied Economics ( email )

Athens, GA 30602-7509
United States

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