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Last updated:

April 14, 2022


Unlimited Duration


This course includes:

Unlimited Duration

Badge on Completion

Certificate of completion

Unlimited Duration


This course shows how some of the theories and tools of economics can be applied to understanding and tackling the problem of flood risk in the UK.

With the incidence of flooding rising due to climate change, this is an increasingly important policy issue worldwide. You will gain insights into the practical use of economics in a policymaking setting.

This OpenLearn course provides a sample of Level 2 study in Economics.

Course learning outcomes

After studying this course, you should be able to:

  • Begin to understand and confidently use some economic concepts and terminology
  • Break down the issue of flood risk into some essential elements and apply appropriate economic theory and techniques to its analysis.

Course Curriculum

  • Introduction 00:07:00
  • Learning outcomes 00:05:00
    • Why flooding happens 00:07:00
    • What is Flooding? 00:05:00
    • Flood risk management 00:10:00
    • Flooding in the UK 00:10:00
    • Building on flood plains 00:10:00
    • Demand factors: why buy homes in flood plains? 00:03:00
    • Competitive markets and market failure 00:15:00
    • The functioning of markets 00:15:00
    • Individual choices 00:15:00
    • The demand-and-supply model 00:15:00
    • Market failure and building on flood plains 00:10:00
    • Market failure and buying on flood plains 00:10:00
    • Options for reducing building on flood plains 00:05:00
    • How might building on flood plains be reduced? 00:10:00
    • Compensation through insurance 00:15:00
    • Potential problems with insurance 00:10:00
    • The UK approach to the problem of flooding 00:10:00
    • Problems with affordable flood insurance 00:15:00
    • A surprising solution 00:15:00
    • Weighing up the options 00:15:00
    • Taking fairness into account 00:15:00
    • Measuring the equity benefit 00:15:00
    • The government’s policy decision 00:10:00
    • Conclusion 00:15:00

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Open University UK