The problem of who should bear the costs of climate-change-induced rises in flood frequency in coastal communities is difficult even before throwing in the not-trivial problem that is it also highly politicized…… And if you think that because you live comfortably inland, this discussion doesn’t affect you, think again. The insurance program under discussion, called the National Flood Insurance Program (NFIP) went from being more or less breakeven for decades (as in it actually once worked as insurance) to being $24 billion in the red thanks to more frequent and severe storms.
The question of who should pay for environmental protection is not a theoretical or rhetorical one. The example above shows that this issue is being worked out in real-time by residents in at-risk areas and taxpayers in safe areas. The price that gets backed out of this process is an insurance premium which represents a real value for the cost of CO2 generation in relation to flooding.
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