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b'In this week\\u2019s episode, host Kristin Hayes talks with Penny Liao, a scholar of behavioral and market responses to environmental risk, who joined Resources for the Future as a fellow earlier this month. Liao elaborates on a new working paper she coauthored about how home equity shapes a household\\u2019s decision to purchase flood insurance. In the end, Liao finds that homeowners with more home equity are especially likely to purchase flood insurance because they do not want to default on their mortgage, while households with highly leveraged mortgages have less incentive to insure against flood risks.\\n\\nReferences and recommendations:\\n\\n\\u201cWhat\\u2019s at Stake? Understanding the Role of Home Equity in Flood Insurance Demand\\u201d by Penny Liao and Philip Mulder; https://www.rff.org/publications/working-papers/whats-at-stake-understanding-the-role-of-home-equity-in-flood-insurance-demand/\\n\\n\\u201cThe Tragedy of the Commons\\u201d by Garrett Hardin; https://science.sciencemag.org/content/162/3859/1243\\n\\n\\u201cThe Problem of Social Cost\\u201d by Ronald Coase; https://link.springer.com/chapter/10.1057/9780230523210_6\\n\\n\\u201cBewilderment\\u201d by Richard Powers; https://www.penguinrandomhouse.com/books/688002/bewilderment-by-richard-powers/\\n\\n\\u201cThe Overstory\\u201d by Richard Powers; http://www.richardpowers.net/the-overstory/'