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Resource Allocation under Fire

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  • Jude Bayham
  • Jonathan K. Yoder

Abstract

Rising suppression cost and severity of wildfires in the United States have prompted debate over federal wildfire management policy. We estimate an econometric model of suppression resource allocation using a dynamic panel dataset on over 500 wildfires in the western United States. We find that more hand crews and engines are dispatched to fires that threaten homes, while more aircraft are dispatched to fires that start near higher-value homes. We combine our results with projected housing growth estimates in California to show that suppression expenditures may rise by nearly $24 million per year.

Suggested Citation

  • Jude Bayham & Jonathan K. Yoder, 2020. "Resource Allocation under Fire," Land Economics, University of Wisconsin Press, vol. 96(1), pages 92-110.
    • Handle: RePEc:uwp:landec:v:96:y:2020:i:1:p:92-110
    Note: DOI: 10.3368/le.96.1.92
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    8. Jeffrey P. Prestemon & Geoffrey H. Donovan, 2008. "Forecasting Resource-Allocation Decisions Under Climate Uncertainty: Fire Suppression with Assessment of Net Benefits of Research," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(4), pages 1118-1129.
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    Cited by:

    1. Hazra, Devika & Gallagher, Patricia, 2022. "Role of insurance in wildfire risk mitigation," Economic Modelling, Elsevier, vol. 108(C).
    2. Bayham, Jude & Bryan, Calvin, 2023. "The Economics of Wildland Firefighting Aviation Procurement and Effectiveness," Western Economics Forum, Western Agricultural Economics Association, vol. 21(2), September.
    3. Rossi, David & Kuusela, Olli-Pekka & Dunn, Christopher, 2022. "A microeconometric analysis of wildfire suppression decisions in the Western United States," Ecological Economics, Elsevier, vol. 200(C).
    4. Wibbenmeyer, Matthew & Plantinga, Andrew J. & Walsh, Randall, 2020. "Priorities and Effectiveness in Wildfire Management: Evidence from Fire Spread in the Western US," RFF Working Paper Series 20-21, Resources for the Future.
    5. Bayham, Jude & Yoder, Jonathan K., 2018. "A Real Barn Burner: The Effectiveness of Home Protection During Wildfire," 2018 Annual Meeting, August 5-7, Washington, D.C. 274302, Agricultural and Applied Economics Association.
    6. Bayham, Jude & Bryan, Calvin, 2023. "The Economics of Wildland Firefighting Aviation Procurement and Effectiveness," Western Economics Forum, Western Agricultural Economics Association, vol. 21(2), September.

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    More about this item

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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