Flooding: evaluating municipal financial contribution as an incentive for risk reduction

Faced with the limitations of current river flood compensation mechanisms, which offer little incentive for risk reduction action by Québec municipalities, this research evaluates whether implementing a municipal financial contribution proportional to risk could improve flood risk management. Based on semi-structured interviews with 35 municipal actors and experts, this study explores the feasibility, acceptability, and potential incentive effect of such an approach within the context of the built environment and climate risk.The findings reveal a lack of consensus and significant skepticism among participants regarding the effectiveness and appropriateness of this financial mechanism. The collected perceptions do not support the initial hypothesis that direct financial contributions incentivize municipalities to prioritize risk reduction measures. Key concerns raised include the complexity of implementation, the perceived misalignment with actual municipal powers (often seen as limited by institutional constraints and historical land-use decisions), and doubts about the efficacy of financial incentives in overcoming these obstacles. The research also highlights that municipalities already incur significant costs related to emergency measures and infrastructure repair post-flooding, which are not always fully compensated.This research concludes that alternative pathways, such as conditional financial support or non-financial incentives, are needed to encourage proactive municipal action in flood risk reduction. Its unique contribution lies in its in-depth analysis of the Québec municipal perspective on this specific mode of financial risk-sharing. The study illuminates the concrete challenges and preferred strategies identified by local stakeholders for enhancing local resilience, thereby informing discussions on responsibility, accountability, and decision-making processes for managing climate-related risks in the built environment.