The effects of wildfire and environmental amenities on property values in northwest Montana, USA
This study employed the hedonic price framework to examine the effects of 256 wildfires and environmental amenities on home values in northwest Montana between June 1996 and January 2007. The study revealed environmental amenities, including proximity to lakes, national forests, Glacier National Park and golf courses, have large positive effects on property values in northwest Montana. However, proximity to and view of wildfire burned areas has had large and persistent negative effects on home values. The analysis supports an argument that homebuyers may correlate proximity to and view of a wildfire burned area with increased wildfire risk. Indeed, when a burned area is not visible from a home, wildfire risk appears to be out of sight and out of mind for homebuyers. Findings from this research can be used to inform debate about efficient allocation of resources to wildfire preparedness, including public education programs, and suppression activities around the wildland-urban interface.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Loomis, John, 2004. "Do nearby forest fires cause a reduction in residential property values?," Journal of Forest Economics, Elsevier, vol. 10(3), pages 149-157, November.
- de Mendonca, Mario Jorge Cardoso & Vera Diaz, Maria del Carmen & Nepstad, Daniel & Seroa da Motta, Ronaldo & Alencar, Ane & Gomes, Joao Carlos & Ortiz, Ramon Arigoni, 2004. "The economic cost of the use of fire in the Amazon," Ecological Economics, Elsevier, vol. 49(1), pages 89-105, May.
- Geoffrey H. Donovan & Patricia A. Champ & David T. Butry, 2007. "Wildfire Risk and Housing Prices: A Case Study from Colorado Springs," Land Economics, University of Wisconsin Press, vol. 83(2), pages 217-233.
- Loomis, John B. & Le, Hung Trong & Gonzales-Caban, Armando, 2005. "Testing transferability of willingness to pay for forest fire prevention among three states of California, Florida and Montana," Journal of Forest Economics, Elsevier, vol. 11(3), pages 125-140, December.
- Margot Lutzenhiser & Noelwah R. Netusil, 2001. "The Effect Of Open Spaces On A Home'S Sale Price," Contemporary Economic Policy, Western Economic Association International, vol. 19(3), pages 291-298, 07.
- Spring, Daniel A. & Kennedy, John O.S., 2005. "Existence value and optimal timber-wildlife management in a flammable multistand forest," Ecological Economics, Elsevier, vol. 55(3), pages 365-379, November.
- Snyder, Stephanie A. & Kilgore, Michael A. & Hudson, Rachel & Donnay, Jacob, 2008. "Influence of purchaser perceptions and intentions on price for forest land parcels: A hedonic pricing approach," Journal of Forest Economics, Elsevier, vol. 14(1), pages 47-72, January.
- Loomis, John B. & Gonzalez-Caban, Armando & Englin, Jeffrey E., 2001. "Testing For Differential Effects Of Forest Fires On Hiking And Mountain Biking Demand And Benefits," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(02), December.
- Mansfield, Carol & Pattanayak, Subhrendu K. & McDow, William & McDonald, Robert & Halpin, Patrick, 2005. "Shades of Green: Measuring the value of urban forests in the housing market," Journal of Forest Economics, Elsevier, vol. 11(3), pages 177-199, December.
- Kaval, Pamela & Loomis, John & Seidl, Andy, 2007.
"Willingness-to-pay for prescribed fire in the Colorado (USA) wildland urban interface,"
Forest Policy and Economics,
Elsevier, vol. 9(8), pages 928-937, May.
- Pamela Kaval & John Loomis & Andrew Seidl, 2006. "Willingness-to-Pay for Prescribed Fire in the Colorado (USA) Wildland Urban Interface," Working Papers in Economics 06/13, University of Waikato, Department of Economics.
- Walker, Susan H. & Rideout, Douglas B. & Loomis, John B. & Reich, Robin, 2007. "Comparing the value of fuel treatment options in northern Colorado's urban and wildland-urban interface areas," Forest Policy and Economics, Elsevier, vol. 9(6), pages 694-703, February.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- Bennetton, Julia & Cashin, Paul & Jones, Darren & Soligo, James, 1998. "An economic evaluation of bushfire prevention and suppression," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(2), June.
- Bennetton, J. & Cashin, P. & Jones, D. & Soligo, J., 1997. "An Economic Evaluation of Bushfire Prevention and Suppression," Department of Economics - Working Papers Series 598, The University of Melbourne.
- Pamela Kaval, 2006. "The Relationship between Well-Being and Wildfire," Working Papers in Economics 06/14, University of Waikato, Department of Economics.
- Okmyung Biny & Stephen Polasky, 2004. "Effects of Flood Hazards on Property Values: Evidence Before and After Hurricane Floyd," Land Economics, University of Wisconsin Press, vol. 80(4). Full references (including those not matched with items on IDEAS)