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The effects of wildfire and environmental amenities on property values in northwest Montana, USA

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  • Stetler, Kyle M.
  • Venn, Tyron J.
  • Calkin, David E.

Abstract

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.

Suggested Citation

  • Stetler, Kyle M. & Venn, Tyron J. & Calkin, David E., 2010. "The effects of wildfire and environmental amenities on property values in northwest Montana, USA," Ecological Economics, Elsevier, vol. 69(11), pages 2233-2243, September.
  • Handle: RePEc:eee:ecolec:v:69:y:2010:i:11:p:2233-2243
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Zhen Xu & G. Cornelis van Kooten, 2013. "Living with Wildfire: The Impact of Historic Fires on Property Values in Kelowna, BC," Working Papers 2013-05, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    2. Ambrey, Christopher L. & Fleming, Christopher M. & Manning, Matthew, 2016. "The hedonistic cost of the Black Saturday bushfires," 2016 Conference (60th), February 2-5, 2016, Canberra, Australia 235304, Australian Agricultural and Resource Economics Society.
    3. Jed Cohen & Christine E. Blinn & Kevin J. Boyle & Thomas P. Holmes & Klaus Moeltner, 2016. "Hedonic Valuation with Translating Amenities: Mountain Pine Beetles and Host Trees in the Colorado Front Range," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(3), pages 613-642, March.
    4. Pitchayaporn Tantihkarnchana & Gregmar Galinato, 2014. "The Amenity Value of Climate Change Across Different Regions in the United States," Working Papers 2014-9, School of Economic Sciences, Washington State University.
    5. Prestemon, Jeffrey P. & Abt, Karen L. & Barbour, R. James, 2012. "Quantifying the net economic benefits of mechanical wildfire hazard treatments on timberlands of the western United States," Forest Policy and Economics, Elsevier, vol. 21(C), pages 44-53.
    6. Hansen, Winslow D. & Naughton, Helen T., 2013. "The effects of a spruce bark beetle outbreak and wildfires on property values in the wildland–urban interface of south-central Alaska, USA," Ecological Economics, Elsevier, vol. 96(C), pages 141-154.
    7. Shawn J. McCoy & Randall P. Walsh, 2014. "W.U.I. on Fire: Risk, Salience & Housing Demand," NBER Working Papers 20644, National Bureau of Economic Research, Inc.
    8. Katuwal, Hari & Venn, Tyron J. & Paveglio, Travis & Prato, Tony, 2015. "Effects of Information Framing and Information Seeking Behavior on Willingness-to-pay for a Wildfire Management Program," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205645, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    9. Katherine A. Kiel & Victor Matheson, 2015. "The Effect of Natural Disasters on Housing Prices: An Examination of the Fourmile Canyon Fire," Working Papers 1503, College of the Holy Cross, Department of Economics.
    10. James R. Meldrum, 2016. "Floodplain Price Impacts by Property Type in Boulder County, Colorado: Condominiums Versus Standalone Properties," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(4), pages 725-750, August.
    11. Siriwardena, Shyamani D. & Boyle, Kevin J. & Holmes, Thomas P. & Wiseman, P. Eric, 2016. "The implicit value of tree cover in the U.S.: A meta-analysis of hedonic property value studies," Ecological Economics, Elsevier, vol. 128(C), pages 68-76.
    12. Hansen, Winslow D. & Mueller, Julie M. & Naughton, Helen T., 2014. "Wildfire in Hedonic Property Value Studies," Western Economics Forum, Western Agricultural Economics Association, vol. 13(01).
    13. Hjerpe, Evan & Kim, Yeon-Su & Dunn, Leah, 2016. "Forest density preferences of homebuyers in the wildland-urban interface," Forest Policy and Economics, Elsevier, vol. 70(C), pages 56-66.

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