TY  - GEN
A1  - Unterberger, Christian
A1  - Hudson, Paul
A1  - Botzen, W. J. Wouter
A1  - Schroeer, Katharina
A1  - Steininger, Karl W.
T1  - Future public sector flood risk and risk sharing arrangements
T2  - Postprints der Universität Potsdam : Mathematisch-Naturwissenschaftliche Reihe
N2  - Climate change, along with socio-economic development, will increase the economic impacts of floods. While the factors that influence flood risk to private property have been extensively studied, the risk that natural disasters pose to public infrastructure and the resulting implications on public sector budgets, have received less attention. We address this gap by developing a two-staged model framework, which first assesses the flood risk to public infrastructure in Austria. Combining exposure and vulnerability information at the building level with inundation maps, we project an increase in riverine flood damage, which progressively burdens public budgets. Second, the risk estimates are integrated into an insurance model, which analyzes three different compensation arrangements in terms of the monetary burden they place on future governments' budgets and the respective volatility of payments. Formalized insurance compensation arrangements offer incentives for risk reduction measures, which lower the burden on public budgets by reducing the vulnerability of buildings that are exposed to flooding. They also significantly reduce the volatility of payments and thereby improve the predictability of flood damage expenditures. These features indicate that more formalized insurance arrangements are an improvement over the purely public compensation arrangement currently in place in Austria.
T3  - Zweitveröffentlichungen der Universität Potsdam : Mathematisch-Naturwissenschaftliche Reihe - 634 
KW  - climate change
KW  - adaptation
KW  - flood risk
KW  - insurance
KW  - public sector
KW  - risk reduction
Y1  - 2019
UR  - https://publishup.uni-potsdam.de/frontdoor/index/index/docId/42462
UR  - https://nbn-resolving.org/urn:nbn:de:kobv:517-opus4-424629
SN  - 1866-8372
IS  - 634
ER  -