| NSF Org: |
RISE Integrative and Collaborative Education and Research (ICER) |
| Recipient: |
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| Initial Amendment Date: | August 29, 2019 |
| Latest Amendment Date: | August 29, 2019 |
| Award Number: | 1940119 |
| Award Instrument: | Standard Grant |
| Program Manager: |
Manda S. Adams
amadams@nsf.gov (703)292-4708 RISE Integrative and Collaborative Education and Research (ICER) GEO Directorate for Geosciences |
| Start Date: | October 1, 2019 |
| End Date: | September 30, 2022 (Estimated) |
| Total Intended Award Amount: | $100,000.00 |
| Total Awarded Amount to Date: | $100,000.00 |
| Funds Obligated to Date: |
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| History of Investigator: |
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| Recipient Sponsored Research Office: |
601 S HOWES ST FORT COLLINS CO US 80521-2807 (970)491-6355 |
| Sponsor Congressional District: |
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| Primary Place of Performance: |
200 West Lake Street Fort Collins CO US 80521-4593 |
| Primary Place of
Performance Congressional District: |
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| Unique Entity Identifier (UEI): |
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| Parent UEI: |
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| NSF Program(s): | CoPe-Coastlines and People |
| Primary Program Source: |
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| Program Reference Code(s): |
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| Program Element Code(s): |
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| Award Agency Code: | 4900 |
| Fund Agency Code: | 4900 |
| Assistance Listing Number(s): | 47.050 |
ABSTRACT
This project evaluates the use of a new type of bond, a coastal community resilience bond (CCRB), that has the potential to assist coastal communities to recover more quickly and become more resilient following a disaster. If effective, this new bond mechanism can be extended to other communities. This new type of bond integrates social assets and physical infrastructure in its development to enable investment in community resilience. The two goals of this resilience bond are to: (1) achieve equitable recovery of both physical and social systems and institutions; and (2) reduce the resilience gap between different types of communities. The resilience bond development includes not only the repair of the physical systems in a community, but also valuation and investment that enable timely recovery of social institutions, bridging a gap in current disaster resilience bonds. As part of this research graduate students will receive cross-disciplinary training where the fields of urban planning, engineering, and finance overlap.
To test this new type of bond, the research team considers two case study communities in Mississippi and South Carolina each having different resilience planning capacities, but both identifying needs in resilience investment. Community level modeling with a portfolio of options to achieve these goals and objectives will consider metrics identified as part of the engagement process combined with what is achievable. A resilience bond pricing methodology will be developed through a series of interviews and consultation with insurance and finance industry experts. Pricing will be discussed with community stakeholders to determine if it is within the acceptable range. The primary outcomes of this research are: (1) the development of a coastal community resilience bond which not only includes the repair of the physical systems in a community, but also provides valuation and investment to enable timely recovery of social institutions, bridging a gap in current disaster resilience bonds; (2) a high-fidelity loss model integrated with a community-level model to enable decision-making based on community needs; and (3) development of a coastal community resilience bond development methodology that is adaptive to varying capacities for resilience investment and planning in a variety of communities.
This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the Foundation's intellectual merit and broader impacts review criteria.
PUBLICATIONS PRODUCED AS A RESULT OF THIS RESEARCH
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PROJECT OUTCOMES REPORT
Disclaimer
This Project Outcomes Report for the General Public is displayed verbatim as submitted by the Principal Investigator (PI) for this award. Any opinions, findings, and conclusions or recommendations expressed in this Report are those of the PI and do not necessarily reflect the views of the National Science Foundation; NSF has not approved or endorsed its content.
Disasters start and end locally – at the community level. The resilience of a community is a dynamic process resulting from complex interaction that is best studied at the nexus of social sciences, economics, engineering, and technology. While disaster resilience bonds are discussed in the literature as a mechanism for communities to protect themselves against catastrophe and enable a more rapid recovery for the overall community, the concept is often focused solely on physical infrastructure with the assumption that the recovery of people will follow. In essence this is the difference between a classical catastrophe bond and a new type of mitigation tool known as a communioty resilience bond. Specifically, disparities in resilience investment and insurance and consequently recovery are rarely considered in the development of catastrophe bonds. This gap not only limits the opportunity for achieving equitable recovery of both physical and social systems and institutions through pre-disaster investments, it also widens the resilience gap between smaller low capacity communities and more affluent larger communities. In this project a large group of stakeholders were individually interviewed which included two groups, namely insurers and finance specalists, to qualitatively determine how the catastrophe bond market may be able to shift to community resilience bonds. Then, a novel mechanism to estimate damage to nearcoast buildings was developed that can be used as the first major part of the analysis of a community for bond pricing throuhg risk calculations. The former will be documented as a key paper to serve as a resource for investors or others looking to create community resilience bonds, and the latter is being released within opensource software to assist analysts predicting risk and resilience of communities.
Last Modified: 01/03/2023
Modified by: John W Van De Lindt
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