Abstract
Floods in Germany have caused significant economic damage and are expected to become more frequent. The economic damage expected as a result of floods will affect households differently across income levels. A method, rooted in economic theory, is proposed to estimate changes in household welfare and income inequality resulting from expected flood damage. It is found that welfare losses after floods disproportionately harm low income households and increase inequality by 0.14%. Families with dependent children and householders of retirement age in the lowest income quartile are the most affected. In order to collect additional resources to cover the cost of the financial relief, the of additional income, real estate and energy taxes are investigated. These instruments yield a reduction in income inequality. It is also shown that rewarding investment in mitigation and insurance, and supporting low income households can be jointly achieved when re-allocating additional energy-tax revenues.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
