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Reducing Social Losses from Forest Fires

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  • Gregory S. Amacher
  • Arun S. Malik
  • Robert G. Haight

Abstract

We evaluate two financial incentives to encourage nonindustrial forest landowners to undertake activities that mitigate fire losses: sharing of fire suppression costs by the landowner and sharing of fuel reduction costs by the government. First and second best outcomes are identified and compared to assess the effectiveness of these incentives in reducing social losses and fire suppression costs, under various assumptions about landowner behavior and information. We find that while cost sharing of fire suppression by the landowner invariably reduces social losses, this is not always true for government cost sharing of landowner fuel reduction. However, cost sharing of fuel reduction can yield larger reductions in social losses when fire risk is high. Both policies tend to induce larger reductions in both social losses and fire suppression costs when landowners engage in fuel reduction. We find that improving a landowner’s information about fire risk and fuel reduction can yield substantial reductions in social losses.

Suggested Citation

  • Gregory S. Amacher & Arun S. Malik & Robert G. Haight, 2006. "Reducing Social Losses from Forest Fires," Land Economics, University of Wisconsin Press, vol. 82(3), pages 367-383.
  • Handle: RePEc:uwp:landec:v:82:y:2006:i:3:p:367-383
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    References listed on IDEAS

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    1. Reed, William J., 1984. "The effects of the risk of fire on the optimal rotation of a forest," Journal of Environmental Economics and Management, Elsevier, vol. 11(2), pages 180-190, June.
    2. Gregory, S. Amacher & Christine Conway, M. & Sullivan, Jay & Gregory, S. Amacher, 2003. "Econometric analyses of nonindustrial forest landowners: Is there anything left to study?," Journal of Forest Economics, Elsevier, vol. 9(2), pages 137-164.
    3. Gregory S. Amacher & Arun S. Malik & Robert G. Haight, 2005. "Not Getting Burned: The Importance of Fire Prevention in Forest Management," Land Economics, University of Wisconsin Press, vol. 81(2).
    4. Swallow Stephen K. & Wear David N., 1993. "Spatial Interactions in Multiple-Use Forestry and Substitution and Wealth Effects for the Single Stand," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 103-120, September.
    5. Englin, Jeffrey E. & Boxall, Peter C. & Hauer, Grant, 2000. "An Empirical Examination Of Optimal Rotations In A Multiple-Use Forest In The Presence Of Fire Risk," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(1), pages 1-14, July.
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    Citations

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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. Patto, João V. & Rosa, Renato, 2022. "Adapting to frequent fires: Optimal forest management revisited," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    3. Barreal, Jesús & Loureiro, Maria L. & Picos, Juan, 2014. "On insurance as a tool for securing forest restoration after wildfires," Forest Policy and Economics, Elsevier, vol. 42(C), pages 15-23.
    4. Yemshanov, Denys & Haight, Robert G. & MacQuarrie, Chris J.K. & Simpson, Mackenzie & Koch, Frank H. & Ryan, Kathleen & Bullas-Appleton, Erin, 2022. "Hierarchical governance in invasive species survey campaigns," Ecological Economics, Elsevier, vol. 201(C).
    5. Prante, Tyler & Little, Joseph M. & Jones, Michael L. & McKee, Michael & Berrens, Robert P., 2011. "Inducing private wildfire risk mitigation: Experimental investigation of measures on adjacent public lands," Journal of Forest Economics, Elsevier, vol. 17(4), pages 415-431.
    6. Manuel Marey-Perez & Xurxo Loureiro & Eduardo José Corbelle-Rico & Cristina Fernández-Filgueira, 2021. "Different Strategies for Resilience to Wildfires: The Experience of Collective Land Ownership in Galicia (Northwest Spain)," Sustainability, MDPI, vol. 13(9), pages 1-13, April.
    7. Roser Rodríguez-Carreras & Xavier Úbeda & Marcos Francos & Claudia Marco, 2020. "After the Wildfires: The Processes of Social Learning of Forest Owners’ Associations in Central Catalonia, Spain," Sustainability, MDPI, vol. 12(15), pages 1-25, July.

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    More about this item

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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