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The effects of a spruce bark beetle outbreak and wildfires on property values in the wildland–urban interface of south-central Alaska, USA

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  • Hansen, Winslow D.
  • Naughton, Helen T.

Abstract

Climate warming is causing the frequency, extent, and severity of natural disturbances to increase. To develop innovative approaches for mitigating the potential negative social consequences of such increases, research is needed investigating how people perceive and respond to natural disturbance. This study uses spatial econometric techniques in a hedonic pricing framework to estimate how wildfires and a spruce bark beetle (Dendroctonus rufipennis) outbreak affect assessed property values on the Kenai Peninsula of south-central Alaska in 2001 and 2010. We find that large wildfires and the spruce bark beetle outbreak increase property values while small wildfires decrease property values. These findings suggest that homeowners may form complex viewpoints, weighing enhancements to environmental amenities with negative consequences that stem from the occurrence of natural disturbance.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:ecolec:v:96:y:2013:i:c:p:141-154
    DOI: 10.1016/j.ecolecon.2013.10.009
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    Cited by:

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    2. Justin Contat & Carrie Hopkins & Luis Mejia & Matthew Suandi, 2024. "When climate meets real estate: A survey of the literature," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 52(3), pages 618-659, May.
    3. Félix Bastit & Marielle Brunette & Claire Montagne-Huck, 2021. "Earth, wind and fire: A multi-hazard risk review for natural disturbances in forests," Working Papers of BETA 2021-25, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    4. 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(1), pages 1-14.
    5. Van Butsic & Maggi Kelly & Max A. Moritz, 2015. "Land Use and Wildfire: A Review of Local Interactions and Teleconnections," Land, MDPI, vol. 4(1), pages 1-17, February.
    6. Paudel, Jayash, 2021. "Short-run environmental effects of COVID-19: Evidence from forest fires," World Development, Elsevier, vol. 137(C).

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    More about this item

    Keywords

    Hedonic property values; Wildfire; Bark beetle outbreak; Wildland–urban interface;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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