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Is There a Link Between Actual and Perceived Wildfire Danger?

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  • Kaval, Pamela

Abstract

Over the last 20 years, costs for wildfire initial attack in the U.S. have increased significantly. The increased cost relates to wildfire suppression practices as well as the growing number of wildland urban interface (WUI) homes. Requiring WUI residents to pay an annual tax for their wildfire risk would lower costs to the general taxpayer. Willingness-to-pay (WTP) for wildfire prevention, in relation to both perceived and actual wildfire danger, was the focus of this study. Colorado WUI residents had a high awareness of wildfire risk and were willing to pay over $400 annually to reduce this risk. Respondents beliefs about wildfire frequency were comparable to the original natural wildfire regimes of their areas pre-European settlement.

Suggested Citation

  • Kaval, Pamela, 2008. "Is There a Link Between Actual and Perceived Wildfire Danger?," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 37090, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  • Handle: RePEc:ags:aaea08:37090
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    File URL: http://purl.umn.edu/37090
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    References listed on IDEAS

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    1. Timothy Park & John B. Loomis & Michael Creel, 1991. "Confidence Intervals for Evaluating Benefits Estimates from Dichotomous Choice Contingent Valuation Studies," Land Economics, University of Wisconsin Press, vol. 67(1), pages 64-73.
    2. Cameron, Trudy Ann, 1988. "A new paradigm for valuing non-market goods using referendum data: Maximum likelihood estimation by censored logistic regression," Journal of Environmental Economics and Management, Elsevier, vol. 15(3), pages 355-379, September.
    3. Kaval, Pamela & Loomis, John & Seidl, Andy, 2007. "Willingness-to-pay for prescribed fire in the Colorado (USA) wildland urban interface," Forest Policy and Economics, Elsevier, vol. 9(8), pages 928-937, May.
    4. Pamela Kaval, 2006. "The Relationship between Well-Being and Wildfire," Working Papers in Economics 06/14, University of Waikato.
    5. W. Michael Hanemann, 1994. "Valuing the Environment through Contingent Valuation," Journal of Economic Perspectives, American Economic Association, vol. 8(4), pages 19-43, Fall.
    6. Hanemann, W. Michael, 1989. "Information and the concept of option value," Journal of Environmental Economics and Management, Elsevier, vol. 16(1), pages 23-37, January.
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