This Brief presents a benefit-cost analysis of the National Flood
Insurance Program (NFIP) as well as an evaluation of its cumulative
socioeconomic effects. Created by Congress in 1968, the NFIP
provides flood insurance protection to property owners, in return
for local government commitment to sound floodplain management.
Since 1994, the NFIP has included a Flood Mitigation Assistance
(FMA) program to provide local communities with support for flood
mitigation. This book offers quantitative evidence of the net
social benefit of the NFIP for the years 1996-2010, including an
independent assessment of the consumer benefit. Second, it provides
distributionally weighted analysis to show the socioeconomic
effects of payments and claims. Finally, this Brief includes an
analysis of the change in government revenue attributable to the
NFIP and FMA programs. The models used in each component of the
analysis are usable by others for extending and revising the
analysis. Providing a comprehensive analysis of this increasingly
important federal policy, this Brief will be of use to students of
environmental economics and public policy as well as those
interested in risk management in the era of climate change.
General
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