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Inducing Private Wildfire Risk Mitigation: Experimental Investigation of Measures on Adjacent Public Lands

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  • Tyler Prante
  • Joseph M. Little
  • Michael L. Jones
  • Michael McKee
  • Robert P. Berrens

Abstract

Increasing private wildfire risk mitigation is an important part of the larger forest restoration policy challenge. Data from an economic experiment are used to evaluate the effectiveness of providing fuel treatments on public land adjacent to private land to induce private wildfire risk mitigation. Results show evidence of “crowding out” where public spending can decrease the level of private risk mitigation. However, a policy prescription that ameliorates this crowding out is identified. Participants undertake more mitigation when fuel treatments on publicly owned lands are conditional on a threshold level of private mitigation effort and information describing each participant’s spending is provided. Key Words:

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File URL: http://econ.appstate.edu/RePEc/pdf/wp1010.pdf
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Bibliographic Info

Paper provided by Department of Economics, Appalachian State University in its series Working Papers with number 10-10.

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Date of creation: 2010
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Handle: RePEc:apl:wpaper:10-10

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Postal: Thelma C. Raley Hall, Boone, North Carolina 28608
Phone: 828-262-2148
Fax: 828-262-6105
Web page: http://www.business.appstate.edu/departments/economics/
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  1. John Talberth & Robert P. Berrens & Michael Mckee & Michael Jones, 2006. "Averting And Insurance Decisions In The Wildland-Urban Interface: Implications Of Survey And Experimental Data For Wildfire Risk Reduction Policy," Contemporary Economic Policy, Western Economic Association International, vol. 24(2), pages 203-223, 04.
  2. Christian S. L. Crowley & Arun S. Malik & Gregory S. Amacher & Robert G. Haight, 2009. "Adjacency Externalities and Forest Fire Prevention," Land Economics, University of Wisconsin Press, vol. 85(1), pages 162-185.
  3. Masashi Konoshima & Claire A. Montgomery & Heidi J. Albers & Jeffrey L. Arthur, 2008. "Spatial-Endogenous Fire Risk and Efficient Fuel Management and Timber Harvest," Land Economics, University of Wisconsin Press, vol. 84(3), pages 449-468.
  4. Ehrlich, Isaac & Becker, Gary S, 1972. "Market Insurance, Self-Insurance, and Self-Protection," Journal of Political Economy, University of Chicago Press, vol. 80(4), pages 623-48, July-Aug..
  5. Dean S. Karlan, 2005. "Using Experimental Economics to Measure Social Capital And Predict Financial Decisions," Working Papers 909, Economic Growth Center, Yale University.
  6. Shafran, Aric P., 2008. "Risk externalities and the problem of wildfire risk," Journal of Urban Economics, Elsevier, vol. 64(2), pages 488-495, September.
  7. Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
  8. Gregory S. Amacher & Arun S. Malik & Robert G. Haight, 2006. "Reducing Social Losses from Forest Fires," Land Economics, University of Wisconsin Press, vol. 82(3), pages 367-383.
  9. Gregory S. Amacher & Arun S. Malik & Robert G. Haight, 2005. "Not Getting Burned: The Importance of Fire Prevention in Forest Management," Land Economics, University of Wisconsin Press, vol. 81(2).
  10. Busby, Gwenlyn M. & Albers, Heidi J. & Montgomery, Claire A., 2007. "Wildfire Risk Management on a Landscape with Public and Private Ownership: Who Pays?," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9734, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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