Investigators from Ohio Wesleyan University Release New Data on Environmental Economics (Stocks, Flows, and Flood Insurance: a Nationwide Analysis of the Capitalized Impact of Annual Premium Discounts On Housing Values): Economics – Environmental Economics

2021 DEC 30 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Fresh data on Economics - Environmental Economics are presented in a new report. According to news reporting originating in Delaware, Ohio, by NewsRx journalists, research stated, “To approach fiscal solvency in the face of escalated intensity and frequency of natural disasters, The National Flood Insurance Program is increasing flood insurance premiums. Despite widespread concerns over the affordability of higher premiums, less attention has been paid to the impact of premium rate increases on housing values.”

Financial support for this research came from National Science Foundation.

The news reporters obtained a quote from the research from Ohio Wesleyan University, “Should housing values capitalize premium discounts, their removal could entail losses in home equity and net wealth, property tax revenue shortfalls for local governments, and relocation disincentives for vulnerable homeowners. We use the quasi-experimental nature of eligibility criteria for the largest class of flood insurance premium discounts to causally estimate the capitalization of flood insurance premium subsidies using nationwide and city-specific hedonic difference-in-difference regressions. We find that in a nationally pooled sample, the average capitalization of subsidy eligibility is $12,352 and show that capitalization exhibits significant and intuitive heterogeneity across municipalities.”

According to the news reporters, the research concluded: “Our results inform policy discussions surrounding the transition to the national Risk Rating 2.0 premium schedule.”

This research has been peer-reviewed.

For more information on this research see: Stocks, Flows, and Flood Insurance: a Nationwide Analysis of the Capitalized Impact of Annual Premium Discounts On Housing Values. Journal of Environmental Economics and Management, 2022;111:102567. Journal of Environmental Economics and Management can be contacted at: Academic Press Inc Elsevier Science, 525 B St, Ste 1900, San Diego, CA 92101-4495, USA. (Elsevier - www.elsevier.com; Journal of Environmental Economics and Management - http://www.journals.elsevier.com/journal-of-environmental-economics-and-management/)

Our news correspondents report that additional information may be obtained by contacting Will Georgic, Ohio Wesleyan University, Dept. of Economics and Business, 218 Rw Corns Bldg, 78 S Sandusky St, Delaware, OH 43015, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jeem.2021.102567. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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