Publication Details

Category Text Publication
Reference Category Journals
DOI 10.1002/eet.456
Title (Primary) The political economy of natural disaster insurance: lessons from the failure of a proposed compulsory insurance scheme in Germany
Author Schwarze, R.; Wagner, G.G.
Source Titel European Environment
Year 2007
Department OEKON
Volume 17
Issue 6
Page From 403
Page To 415
Language englisch
Keywords political economy; natural hazard; flood insurance; Germany; EU
Abstract This paper studies the politico-economic reasons for the refusal of a proposed compulsory flood insurance scheme in Germany. It provides the rationale for such a scheme and outlines the basic features of a market-orientated design. The main reasons for the political rejection of this proposal were the misperceived costs of a state guarantee, legal objections against a compulsory insurance, distributional conflicts between the federal government and the German states on the implied administrative costs and the well known charity hazard of ad hoc disaster relief. The focus on pure market solutions proved to be an ineffective strategy for policy advice in this field.
Persistent UFZ Identifier https://www.ufz.de/index.php?en=20939&ufzPublicationIdentifier=2303
Schwarze, R., Wagner, G.G. (2007):
The political economy of natural disaster insurance: lessons from the failure of a proposed compulsory insurance scheme in Germany
European Environment 17 (6), 403 - 415 10.1002/eet.456