Fanget i faresone - grunneiers ansvar og kostnader ved flomsikringstiltak

Abstract

To address inaction in natural peril risk mitigation, ongoing legal work aims to clarify responsibilities among landowners, municipalities and the national government in preventing natural perils for the built environment. This article examines economic consequences for landowners in flood hazard zones who are imposed to implement preventive measures. Using a multidisciplinary approach, it assesses whether current legal frameworks promote flood risk mitigation by evaluating the economic impacts of existing laws and potential statutory responsibilities. A net present value analysis of a hypothetical case indicates an incentive to engage in mitigation efforts but does not capture the underlying risks or normative aspects. A real options analysis further reveals that the landowner faces significant uncertainties, with outcomes ranging from financial gain to potential ruin. The landowner will hesitate to act if he/she believes the national government will intervene. Cost-sharing among affected landowners may be crucial for voluntary measures. Sensitivity analysis reveal that increased flood risk and damage costs, combined with potential of reduced insurance coverage may accelerate investment in preventive measures. The study highlights the need for clear coordination among stakeholders, provision of technical assistance, and favorable loan and insurance conditions.