2min chapter

The Daily cover image

Should The Government Pay for Your Bad Climate Decisions?

The Daily

CHAPTER

The Government's Perverse Incentives and Moral Hazards in Climate Change

According to a new report, the government creates perverse incentives and moral hazards when it comes to climate. The federal government basically backstops all flood insurance across the country. So people who don't live in risky areas end up subsidizing the people who do. Right. Exactly what you just said that they're not fully pricing in their risks.

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