Citation

Nguyen CN. Int. J. Disaster Risk Reduct. 2020; 47: e101543.

Copyright

(Copyright © 2020, Elsevier Publishing)

DOI

10.1016/j.ijdrr.2020.101543

PMID

unavailable

Abstract

The Canterbury earthquake sequence (2010-2011) badly damaged land and created new risks from rockfalls and cliff collapses in several residential areas in Christchurch, New Zealand. This affected about 8000 houses which were then reclassified as 'Red Zoned' and owners were offered a buy-out by the New Zealand government. The government provided two options to the affected homeowners, based on insurance compensation for damage incurred, or on compensation from the government. This paper examines how the determinants of owners' choices, including property value, level of earthquake damage and household's demographic information, affect homeowner's choice between these options. This also investigates how peer effects influenced owners and led to sub-optimal decision-making.

Language: en

Keywords

Insurance; Managed retreat; Re-zoning; Relocation program