@article{HudsonThieken2022,
  author    = {Hudson, Paul and Thieken, Annegret},
  title     = {The presence of moral hazard regarding flood insurance and German private businesses},
  series = {Natural hazards : journal of the International Society for the Prevention and Mitigation of Natural Hazards},
  volume    = {112},
  journal   = {Natural hazards : journal of the International Society for the Prevention and Mitigation of Natural Hazards},
  number    = {2},
  publisher = {Springer},
  address   = {Dordrecht [u.a.]},
  issn      = {0921-030X},
  doi       = {10.1007/s11069-022-05227-9},
  pages     = {1295 -- 1319},
  year      = {2022},
  abstract  = {There is a movement towards the concepts of integrated flood risk management and governance. In these concepts, each stakeholder prone to flooding is tasked with actively limiting flood impacts. Currently, relatively more research has focused upon the adaptation of private households and not on private businesses operating in flood-prone areas. This paper offers an extension of this literature on business-level flood adaptation by exploring the potential presence of moral hazard. The analyses are based on survey data collected in the aftermath of six floods across Germany between 2002 and 2013 to provide a first indication of the presence of moral hazard in private businesses. Moral hazard is where increased insurance coverage results in policyholders preparing less, increasing the risk they face, a counterproductive outcome. We present an initial study of moral hazard occurring through three channels: the performance of emergency measures during a flood, changes in precautionary behavior employed before a given flood occurred, and changes in the intention to employ additional precautionary measures after a flood. We find, much like for private households, no strong indication that moral hazard is present regarding past adaptation. However, there is a potential avenue after 2005 for insurance coverage to lower businesses' intentions to employ more adaptation measures after a flood. This has significant policy relevance such as opportunities for strengthening the link between insurance and risk reduction measures and boosting insurance coverage against flooding in general.},
  language  = {en}
}
@misc{HudsonBotzenPoussinetal.2019,
  author    = {Hudson, Paul and Botzen, W. J. Wouter and Poussin, Jennifer and Aerts, Jeroen C. J. H.},
  title     = {Impacts of flooding and flood preparedness on subjective well-being},
  series = {Journal of Happiness Studies},
  volume    = {20},
  journal   = {Journal of Happiness Studies},
  number    = {2},
  publisher = {Springer Science},
  address   = {Dordrecht},
  issn      = {1389-4978},
  doi       = {10.1007/s10902-017-9916-4},
  pages     = {665 -- 682},
  year      = {2019},
  abstract  = {Flood disasters severely impact human subjective well-being (SWB). Nevertheless, few studies have examined the influence of flood events on individual well-being and how such impacts may be limited by flood protection measures. This study estimates the long term impacts on individual subjective well-being of flood experiences, individual subjective flood risk perceptions, and household flood preparedness decisions. These effects are monetised and placed in context through a comparison with impacts of other adverse events on well-being. We collected data from households in flood-prone areas in France. The results indicate that experiencing a flood has a large negative impact on subjective well-being that is incompletely attenuated over time. Moreover, individuals do not need to be directly affected by floods to suffer SWB losses since subjective well-being is lower for those who expect their flood risk to increase or who have seen a neighbour being flooded. Floodplain inhabitants who prepared for flooding by elevating their home have a higher subjective well-being. A monetisation of the aforementioned well-being impacts shows that a flood requires Euro150,000 in immediate compensation to attenuate SWB losses. The decomposition of the monetised impacts of flood experience into tangible losses and intangible effects on SWB shows that intangible effects are about twice as large as the tangible direct monetary flood losses. Investments in flood protection infrastructure may be under funded if the intangible SWB benefits of flood protection are not taken into account.},
  language  = {en}
}