Natural capital can be used to reduce disaster losses; for example, wetlands store floodwaters and mangroves buffer storm surge. This paper reviews the experience of several US communities that chose to use natural systems to mitigate a variety of risks. The paper discusses the communities' motivations in choosing to use natural capital as opposed to other risk-reduction measures, the policy approaches for doing so, the political and institutional challenges involved, and strategies for overcoming those challenges.
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Carolyn Kousky (2010) studied this question.
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