But while the insurance scheme drew the attention of international scholars working on climate change (e.g., De Moel et al., 2009; Aerts and Botzen, 2011), domestic interest in the NFIP declined towards the turn of the century.
The award recognizes Michel-Kerjan's work on Evaluating Flood Resilience Strategies for Coastal Megacities, published this year in Science, which was jointly undertaken with Jeroen Aerts, Wouter Botzen, Hans de Moel (VU University, Amsterdam), Kerry Emanuel (MIT) and Ning Lin (Princeton University).
For Europe, Botzen and Marey (2010) find evidence of a monetary policy response to equity prices in the European Central Bank, while Bohl, Siklos, and Werner (2007) do not find such evidence for the Deutsche Bundesbank in the pre-Euro era.
This is a finding contrary to the prior studies such as Michel-Kerjan and Kunreuther (2011) and Botzen, Wouter and van den Bergh (2012) which suggest that the expectation of ex post public compensation on flood damage lowers the insurance demand and discourages the loss control activities.
(4) Botzen and van den Bergh claim that economic efficiency will be improved when private insurance coverage against flood damage is extended: uncertainty for individuals concerning the compensation of damage is less when private insurance is available.