Flood Vulnerability Models and Household Flood Damage Mitigation Measures: An Econometric Analysis of Survey Data

Abstract

AbstractFlood events are expected to increase in their frequency and severity, which results in higher flood risk without additional adaptation measures. The information gained from flood risk models is essential in effective disaster risk management. However, vulnerability estimations are often a large driver of uncertainty, and flood damage is rarely estimated due to a lack of empirical damage data from flood events. This study uses a unique data set with experienced damages and the implementation of flood damage mitigation (FDM) measures on the household level, collected after the flood event in the Netherlands in 2021. Flood damage models that control for several hazard, exposure, and vulnerability indicators are estimated and allow for additional input in flood risk models. Previous estimates of the effectiveness of FDM measures are prone to a selection bias, as households that do, and do not implement FDM measures systematically differ in their risk profiles. By using an instrumental variable‐estimation, this study overcomes this selection bias and finds significant reductions in flood damage due to FDM measures. These reductions can be incorporated in multivariate flood vulnerability estimations, which indicate that FDM measures significantly reduce flood damage. Providing information on flood hazard, as well as implementing early warning systems, is crucial for ensuring effective flood risk management.