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.
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- 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.
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- 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.
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- 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.
- 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.
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- Pamela Kaval, 2006. "The Relationship between Well-Being and Wildfire," Working Papers in Economics 06/14, University of Waikato, Department of Economics.
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- 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.
- 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).
- 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.
- 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.
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