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Estimating Private Incentives for Wildfire Risk Mitigation: Determinants of Demands for Different Fire-Safe Actions

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Author Info

  • Kobayashi, Mimako
  • Zirogiannis, Nikolaos
  • Rollins, Kimberly S.
  • Evans, M.D.R.

Abstract

In this article we develop a general conceptual model of a property-owner’s decision to implement actions to protect his property against wildfire threat. Assuming a prospective-utility maximizing decision maker, we derive a system of demand functions for fire-safe actions that characterizes factors affecting individual decision making. We then empirically estimate the demands for various fire-safe actions functions using survey data of property owners facing a wildfire threat in Nevada. We find that the probability of individuals implementing some fire-safe action increases with value of the residence, previous experience with wildfire, the property being used as the primary residence, positive attitude towards wildfire management methods on public lands, and connectedness of community members. A lower probability of implementing fire-safe actions is found for those who value pristine nature and privacy that nature provides.

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File URL: http://purl.umn.edu/61867
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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado with number 61867.

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Date of creation: 2010
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Handle: RePEc:ags:aaea10:61867

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Keywords: Risk and Uncertainty;

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Cited by:
  1. Kimberly Rollins & Mimako Kobayashi, 2010. "Embedding a Field Experiment in Contingent Valuation to Measure Context-Dependent Risk Preferences: Does Prospect Theory Explain Individual Responses for Wildfire Risk?," Working Papers 10-003, University of Nevada, Reno, Department of Economics & University of Nevada, Reno , Department of Resource Economics.

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