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At War with the WeatherManaging Large-Scale Risks in a New Era of Catastrophes$
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Howard C. Kunreuther and Erwann O. Michel-Kerjan

Print publication date: 2009

Print ISBN-13: 9780262012829

Published to MIT Press Scholarship Online: August 2013

DOI: 10.7551/mitpress/9780262012829.001.0001

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Enhancing the Implementation of Risk Reduction Measures

Enhancing the Implementation of Risk Reduction Measures

(p.247) 12 Enhancing the Implementation of Risk Reduction Measures
At War with the Weather

Howard C. Kunreuther

Erwann O. Michel-Kerjan

The MIT Press

This chapter explores how risk reduction measures can mitigate losses from natural disasters and how insurance can encourage more homeowners to adopt cost-effective protective measures. After discussing the role of insurance as a link between mitigation and risk financing, it shows that the adoption of building codes, as applied in Florida, dramatically minimizes damage from hurricanes, and that many homeowners do not voluntarily adopt cost-effective risk reduction mitigation measures. In addition to the implementation of building codes, adoption of mitigation measures may be increased by developing economic incentive programs such as tax rebates and by adopting zoning ordinances.

Keywords:   risk reduction, natural disasters, mitigation, risk financing, building codes, Florida, zoning ordinances, tax rebates, insurance

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