The attitude towards flood insurance purchase when respondents' preferences are uncertain
A fuzzy approach
Bibliographic Data
| ID | 12597676 |
|---|---|
| Authors | Hung‐chih Hung (0000-0002-4031-8481, National Taipei University, corresponding author) |
| Year | 2009 |
| Volume | 12 |
| Issue | 2 |
| Pages | 239-258 |
| Publication date | 2009-02-25 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Risk Research (JOURNAL) |
| Journal identifiers | ISSN: 1366-9877 • E-ISSN: 1466-4461 |
| Publisher | Routledge (PUBLISHER • GB) |
| DOI | 10.1080/13669870802497702 |
| OpenAlex | W1988897653 |
| Language | EN |
| Citations received | 24 |
| References cited | 46 |
Individuals may have difficulty in determining whether or not to buy insurance against low-probability, high-loss events. This ambivalence would cause preference uncertainty and decrease homeowners' interest in voluntarily buying insurance. This paper incorporated fuzzy set theory into contingent valuation analysis to examine the determinants of attitude towards buying flood insurance under preference uncertainty. The results show that the perceived levels of flood risk, experience with flood, disposable income, as well as house conditions, are influential factors in the decision-making process for insurance purchase. However, both the estimated price and income elasticities are low for flood insurance purchase. It is worthy to note that governments' artificial structures provide a disincentive for buying insurance, although respondents perceived or/and are exposed to a high level of flood risk. The findings also show that the spread of fuzzy willingness to pay regions is wide, resulting from respondents' high uncertainty on their value judgment to insurance. This indicates that preference uncertainty and conservatism rule are the key factors that cause respondents to tend to reject buying insurance
Actuarial science · Ambivalence · Contingent valuation · Economics · Flood insurance · Flood myth · Geography · Microeconomics · Preference · Statistics · Valuation (finance · Value (mathematics · Willingness to pay · Economic and Environmental Valuation · Flood Risk Assessment and Management · Housing Market and Economics · Mathematics · Psychology · Social Psychology · Finance
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The determinants of integrating policy-based and community-based adaptation into coastal hazard risk management
Understanding the motivations of coastal residents to voluntarily purchase federal flood insurance
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The likelihood of having flood insurance increases with social expectations
Household economic resilience to catastrophic rainstorms and flooding in a Chinese megacity
Flood Perception and Mitigation
Welfare Evaluations in Contingent Valuation Experiments with Discrete Responses
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Welfare Evaluations in Contingent Valuation Experiments with Discrete Response Data
The Demand for Flood Insurance
A new paradigm for valuing non-market goods using referendum data
Prospect Theory
Disasters by Design
Consequences of perceived risk
Perceived risk and the earthquake insurance purchase decision
Risk Perception and Worry Related to Adolescents' Judgement of Three Types of Risk
Anchoring Effects, Survey Conditions, and Respondents' Characteristics
The Social Amplification of Risk
Market Insurance, Self-Insurance, and Self-Protection
Aspects of Rational Insurance Purchasing
Optimal Insurance Coverage
Hazard Communication
Plans Can Matter! The Role of Land Use Plans and State Planning Mandates in Limiting the Development of Hazardous Areas
The application of seismic risk-benefit analysis to land use planning in Taipei City
| Unique citing works | 24 |
|---|---|
| Citations per year | 1,5 |
| Citation span | 2010 - 2026 (17) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 24 |