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Homeowners' Risk Perceptions and Preferences for Property-Level Flood Protection
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- Author / Creator
- Giannitsos, Marina
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Evidence suggests that property-level risk reduction against natural hazards is worthwhile, however households often don’t make these investments. The overall objective of this thesis was to understand the decision-making process concerning household investment in property-level flood protection (PLFP) measures, analyze whether specific PLFP devices were beneficial from a household perspective, and learn which factors were most salient to household choice. Data were collected through a survey of Edmonton homeowners in four mature neighbourhoods. The principal method used was stated preference to elicit the homeowners’ willingness-to-pay (WTP) for two PLFP devices: backwater valves and sump pump systems. In addition to preferences, the survey collected information on several factors that were deemed likely to influence choice regarding investment in flood protection, including households’ risk perceptions and previous flood experience. We evaluated these data using econometric analysis. A household-level cost benefit analysis was also conducted to see whether these devices were economically efficient from the homeowner’s perspective. Key findings show that the average market cost to purchase and install these devices, as stated by local plumbers, was higher than the average WTP of households in our sample. Through the econometric analysis we found that WTP was influenced by household size, age, monetary incentives, and risk perceptions. Through the cost-benefit analysis we found that the average household would have a net benefit from having PLFP devices based on their risk perception for experiencing a flood event and their expected losses, however, they were still unlikely to invest. The results of this thesis add to the empirical literature on property-level climate adaptation and resilience, the effectiveness of incentives for private goods with positive externalities, and the economic efficiency of property-level risk reduction.
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- Subjects / Keywords
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- Graduation date
- Fall 2023
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- Type of Item
- Thesis
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- Degree
- Master of Science
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- License
- This thesis is made available by the University of Alberta Libraries with permission of the copyright owner solely for non-commercial purposes. This thesis, or any portion thereof, may not otherwise be copied or reproduced without the written consent of the copyright owner, except to the extent permitted by Canadian copyright law.