Household Preferences for a Hurricane Mitigation Fund in Florida

Abstract

AbstractIn this study, household preferences in terms of willingness to pay for financing a hurricane mitigation fund in the State of Florida were investigated. Survey results indicate that more than one-fourth of homeowners would be willing to pay to finance a mitigation fund. The willingness to pay (WTP) is driven by household income, risk perceptions, and support to specific mitigation measures such as rating home structures and funding the insurance system. Household WTP estimates were also presented. With an annual household contribution of $43–$45, the State of Florida could raise more than $300 million for a hurricane mitigation fund. This annual contribution is more than the $250 million that the My Safe Florida Home (MSFH) Program spent in 2007 to 2009. A highly conservative WTP estimates ($7.77/year) suggest that Florida could collect almost $55.5 million per year to fund a hurricane mitigation program similar to the MSFH program. The program could help in delivering salient risk information and...