Cost of Drought
Distribution of drought-induced costs of foundation damage to housing among actors in the Netherlands
R.J. van Rooijen (TU Delft - Technology, Policy and Management)
T. Filatova – Mentor (TU Delft - Technology, Policy and Management)
M.E. Warnier – Mentor (TU Delft - Technology, Policy and Management)
Erna Ovaa – Mentor (Rijkswaterstaat)
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Abstract
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.