Abstract
The failure of homeowners to invest in mitigation measures for reducing potential losses from earthquakes presents a major obstacle to stemming economic losses. The design of earthquake risk reduction policies requires an understanding of the appropriate combination of institutional and individual incentives for inducing investment in mitigation. We address the challenges of inducing protective actions by considering the experiences with energy conservation, radon reduction, and termite control. We examine the institutional design of relevant policies and programs, the role of various intermediaries, and the involvement of third parties in creating markets for services. From this, we draw lessons about the leveraging of governmental resources, fostering of markets for services, and carrying out of programs for outreach and education.
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