The economics of flood insurance
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Contents

  • Introduction
  • Learning outcomes
  • 1 Why flooding happens
    • 1.1 What is Flooding?
    • 1.2 Flood risk management
    • 1.3 Flooding in the UK
  • 2 Building on flood plains
    • 2.1 Demand factors: why buy homes in flood plains?
  • 3 Competitive markets and market failure
    • 3.1 The functioning of markets
    • 3.2 Individual choices
    • 3.3 The demand-and-supply model
    • 3.4 Market failure and building on flood plains
    • 3.5 Market failure and buying on flood plains
  • 4 Options for reducing building on flood plains
    • 4.1 How might building on flood plains be reduced?
    • 4.2 Compensation through insurance
    • 4.3 Potential problems with insurance
  • 5 The UK approach to the problem of flooding
    • 5.1 Problems with affordable flood insurance
    • 5.2 A surprising solution
    • 5.3 Weighing up the options
    • 5.4 Taking fairness into account
    • 5.5 Measuring the equity benefit
    • 5.6 The government’s policy decision
  • 6 Conclusion
  • Glossary
  • References
  • Acknowledgements

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