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Utility theoretic semi-logarithmic incomplete demand systems in a natural experiment: Forest fire impacts on recreational values and use

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  • Hilger, James
  • Englin, Jeffrey

Abstract

This study develops a utility theoretic demand model for an arbitrary number of goods that handles correlation between goods and over time. The bivariate compound Poisson estimator is applied to a semi-logarithmic incomplete demand system to estimate the demand for wilderness recreation and the associated welfare measures both prior to and post a 40,000 acre wilderness fire in Washington. Forest fires can simultaneously affect the environmental qualities of many recreational sites; this highlights the need for a utility theoretic demand system approach for modeling consumer behavior that handles the dynamic behavioral and statistical interdependencies over goods and time. Results suggest an increase in consumer welfare per trip post fire, after an initial period of low values, relative to before the fire.

Suggested Citation

  • Hilger, James & Englin, Jeffrey, 2009. "Utility theoretic semi-logarithmic incomplete demand systems in a natural experiment: Forest fire impacts on recreational values and use," Resource and Energy Economics, Elsevier, vol. 31(4), pages 287-298, November.
    • Handle: RePEc:eee:resene:v:31:y:2009:i:4:p:287-298
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    Cited by:

    1. Kolstoe, Sonja H. & Kaminski, Abigail R. & Maher, Anna T., 2023. "Viewsheds and Recreation Demand: Approaches for Capturing Visual Qualities of the Landscape Post-Fire," Western Economics Forum, Western Agricultural Economics Association, vol. 21(2), September.
    2. Hansen, Winslow D. & Naughton, Helen T., 2013. "The effects of a spruce bark beetle outbreak and wildfires on property values in the wildland–urban interface of south-central Alaska, USA," Ecological Economics, Elsevier, vol. 96(C), pages 141-154.
    3. Kolstoe, Sonja H. & Kaminski, Abigail R. & Maher, Anna T., 2023. "Viewsheds and Recreation Demand: Approaches for Capturing Visual Qualities of the Landscape Post-Fire," Western Economics Forum, Western Agricultural Economics Association, vol. 21(2), September.
    4. Gellman, Jacob & Walls, Margaret & Wibbenmeyer, Matthew, 2022. "Wildfire, smoke, and outdoor recreation in the western United States," Forest Policy and Economics, Elsevier, vol. 134(C).
    5. Nobel, Anne & Lizin, Sebastien & Witters, Nele & Rineau, Francois & Malina, Robert, 2020. "The impact of wildfires on the recreational value of heathland: A discrete factor approach with adjustment for on-site sampling," Journal of Environmental Economics and Management, Elsevier, vol. 101(C).
    6. Hellström, Jörgen & Nordström, Jonas, 2012. "Demand and welfare effects in recreational travel models: Accounting for substitution between number of trips and days to stay," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(3), pages 446-456.
    7. Garnache, Cloe & Lupi, Frank, 2018. "The Thomas Fire and the Effect of Wildfires on the Value of Recreation Services in Southern California," 2018 Annual Meeting, August 5-7, Washington, D.C. 274028, Agricultural and Applied Economics Association.
    8. Otrachshenko, Vladimir & Nunes, Luis C., 2022. "Fire takes no vacation: impact of fires on tourism," Environment and Development Economics, Cambridge University Press, vol. 27(1), pages 86-101, February.
    9. Sánchez, José J. & Baerenklau, Ken & González-Cabán, Armando, 2016. "Valuing hypothetical wildfire impacts with a Kuhn–Tucker model of recreation demand," Forest Policy and Economics, Elsevier, vol. 71(C), pages 63-70.

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