Article: Sharing Environmental Risks: How to Control Governments' Losses in Natural Disasters.

Recent natural disasters have demonstrated the public sector's vulnerability to natural hazards. It is estimated that state and local governments lose $1 billion annually as a result of damages to public facilities from such disasters, which are minimally covered by insurance or disaster assistance from the federal government.

The book identifies four options to address environmental risk: react to disasters through available resources; risk elimination or risk reduction by relocating infrastructure away from highly vulnerable locations or by redesigning existing infrastructure; or transfer risk to other levels of government, to the private sector or through ...

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