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The social security for climate change risks

  • 7 March, 2024
  • 11:45
  • VU Aula, De Boelelaan 1105 1081 HV Amsterdam
  • VU University Amsterdam, Institute for Environmental Studies (IVM)
  • prof.dr. Wouter Botzen & prof.dr. Jeroen Aerts

Climate change and population growth in flood-prone areas are increasing the risk of riverine flooding in many European countries. In order to financially protect the population, flood insurance can be provided in various forms. Besides enhancing financial stability regarding flood risk, insurance has the potential to encourage risk mitigation and adaptation measures, such as physical flood protection adjustments to a building or relocation to a less risky area. The insurance arrangements proposed for this purpose may have positive and negative side effects, including an interaction effect with governmental disaster relief provision, an effect on unaffordability of premiums and income inequality between regions, and various macroeconomic effects such as on consumption, production and GDP growth. The proposed PhD thesis will conduct a thorough investigation into these societal effects resulting from various proposed flood insurance arrangements. The analyses in this thesis make use of, and extend upon, the existing “Dynamic Integrated Flood Insurance” (DIFI) model.

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Max Tesselaar

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