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An Econometric Model of Wildfire Suppression Productivity

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  • Jonathan Yoder
  • Mariam Lankoande

    ()
    (School of Economic Sciences, Washington State University)

Abstract

We estimate a model of suppression productivity for individual fires, where suppression productivity is measured in terms of the reduction in the estimated market value of wildfire losses. Estimation results show that at the margin, every dollar increase in suppression costs reduces resource damage by 12 cents, while each dollar invested in pre-suppression reduces suppression expenditures by 3.76 dollars. These results suggest that there is an over-allocation of fire management funds to suppression activities relative to prevention measures in terms of costeffectiveness. This paper provides an empirical basis for a widely used economic model of wildfire management that seeks to minimize the sum of suppression costs and economic losses from wildfires, the cost plus net value change model of fire suppression (C+NVC).

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File URL: http://faculty.ses.wsu.edu/WorkingPapers/WP_2006-10Suppression.pdf
File Function: First version, 2006
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Bibliographic Info

Paper provided by School of Economic Sciences, Washington State University in its series Working Papers with number 2006-10.

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Length: 41 pages
Date of creation: Sep 2006
Date of revision:
Handle: RePEc:wsu:wpaper:yoder-2

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Web page: http://faculty.ses.wsu.edu/
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Keywords: wildfire suppression;

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  1. Bengt Muthén, 1984. "A general structural equation model with dichotomous, ordered categorical, and continuous latent variable indicators," Psychometrika, Springer, vol. 49(1), pages 115-132, March.
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Cited by:
  1. Mendes, Isabel, 2010. "A theoretical economic model for choosing efficient wildfire suppression strategies," Forest Policy and Economics, Elsevier, vol. 12(5), pages 323-329, June.
  2. 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.
  3. Rollins, Kimberly S. & Kobayashi, Mimako, 2010. "Embedding a Field Experiment in Contingent Valuation to Measure Context-Dependent Risk Preferences: An Application to Wildfire Risk," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61870, Agricultural and Applied Economics Association.

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