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Evaluating Alternative Prescribed Burning Policies to Reduce Net Economic Damages from Wildfire

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  • D. Evan Mercer
  • Jeffrey P. Prestemon
  • David T. Butry
  • John M. Pye

Abstract

We estimate a wildfire risk model with a new measure of wildfire output, intensity-weighted risk and use it in Monte Carlo simulations to estimate welfare changes from alternative prescribed burning policies. Using Volusia County, Florida as a case study, an annual prescribed burning rate of 13% of all forest lands maximizes net welfare; ignoring the effects on wildfire intensity may underestimate optimal rates of prescribed burning. Our estimated supply function for prescribed fire services is inelastic, suggesting that increasing contract prescribed fire services on public lands may produce rapidly escalating costs for private landowners and unintended distributional and “leakage” effects. Copyright 2007, Oxford University Press.

Suggested Citation

  • D. Evan Mercer & Jeffrey P. Prestemon & David T. Butry & John M. Pye, 2007. "Evaluating Alternative Prescribed Burning Policies to Reduce Net Economic Damages from Wildfire," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(1), pages 63-77.
  • Handle: RePEc:oup:ajagec:v:89:y:2007:i:1:p:63-77
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    File URL: http://hdl.handle.net/10.1111/j.1467-8276.2007.00963.x
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    Cited by:

    1. Christian Langpap & JunJie Wu, 2021. "Preemptive Incentives and Liability Rules for Wildfire Risk Management," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1783-1801, October.
    2. Benjamin A. Jones & Robert P. Berrens, 2021. "Prescribed Burns, Smoke Exposure, And Infant Health," Contemporary Economic Policy, Western Economic Association International, vol. 39(2), pages 292-309, April.
    3. Esther Jose & Puneet Agarwal & Jun Zhuang, 2023. "A data-driven analysis and optimization of the impact of prescribed fire programs on wildfire risk in different regions of the USA," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 118(1), pages 181-207, August.
    4. 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.
    5. Esteban, Bernat & Riba, Jordi-Roger & Baquero, Grau & Rius, Antoni, 2015. "Comparative cost evaluation of heating oil and small-scale wood chips produced from Euro-Mediterranean forests," Renewable Energy, Elsevier, vol. 74(C), pages 568-575.
    6. Charles Sims & Betsy Heines & Suzanne Lenhart, 2017. "Assessing the Economic Tradeoffs Between Prevention and Suppression of Forest Fires," Working Papers 2017-05, University of Tennessee, Department of Economics.
    7. Kim, Yeon-Su & Rodrigues, Marcos & Robinne, François-Nicolas, 2021. "Economic drivers of global fire activity: A critical review using the DPSIR framework," Forest Policy and Economics, Elsevier, vol. 131(C).
    8. Venn, Tyron J. & Quiggin, John, 2017. "Early evacuation is the best bushfire risk mitigation strategy for south-eastern Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(3), July.
    9. Eliott, Martyn G. & Venn, Tyron J. & Lewis, Tom & Farrar, Michael & Srivastava, Sanjeev K., 2021. "A prescribed fire cost model for public lands in south-east Queensland," Forest Policy and Economics, Elsevier, vol. 132(C).
    10. Florec, Veronique & Pannell, David J. & Burton, Michael P. & Kelso, Joel & Mellor, Drew & Milne, George, 2012. "Economic analysis of prescribed burning for wildfire management in Western Australia," Working Papers 135305, University of Western Australia, School of Agricultural and Resource Economics.
    11. Susaeta, Andres & Carney, Tyler, 2023. "Optimal regimes of prescribed burning in forest plantations in the presence of risk of wildfires in the southeastern United States," Forest Policy and Economics, Elsevier, vol. 151(C).

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