Abstract

Hurricanes cause significant wind and water damage, yet economic research primarily focuses on the latter due to data limitations. We overcome this problem by analyzing photographs taken after Hurricane Irma (2017) to identify over 6,000 blue-tarped homes. Using a regression discontinuity framework, we find that a 2001 revision in Florida’s building codes impacted wind risk for over 160,000 homeowners. Adopters were 30% less likely to experience wind damage and saw a 21.8% to 28.1% reduction in damage severity. Unrepaired properties also sold for 12.4% ($27,300) less, underscoring the importance of building codes in mitigating risk and promoting climate change adaptation.

Practical information