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R.J. van Rooijen
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Cost of Drought
Distribution of drought-induced costs of foundation damage to housing among actors in the Netherlands
Due to drought, houses with wooden foundations in the Netherlands can start to rot. This causes damage to houses and a higher risk of subsidence. Approximately 425.000 houses are currently at risk, this can go upto 687.000 in the future. Foundation damage is not cheap, it can cost €50.000 to €150.000 per house. This thesis explores the possibility for policies to distribute the costs of foundation damage. A spatially explicit agent-based model (ABM) has been used to find the answer to this research question. The homeowner’s behaviour, the government, insurance companies and banks are included as agents. A nudging policy, insurance policy and subsidy policy have been implemented and evaluated. This thesis has been conducted at the strategic exploration department of Rijkswaterstaat.
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Due to drought, houses with wooden foundations in the Netherlands can start to rot. This causes damage to houses and a higher risk of subsidence. Approximately 425.000 houses are currently at risk, this can go upto 687.000 in the future. Foundation damage is not cheap, it can cost €50.000 to €150.000 per house. This thesis explores the possibility for policies to distribute the costs of foundation damage. A spatially explicit agent-based model (ABM) has been used to find the answer to this research question. The homeowner’s behaviour, the government, insurance companies and banks are included as agents. A nudging policy, insurance policy and subsidy policy have been implemented and evaluated. This thesis has been conducted at the strategic exploration department of Rijkswaterstaat.