Spatio-Temporal Modeling of Lightning Fires on Forestland: A Compensation Scheme
In the US forestry industry, wildfire has always been one of the leading causes of damage. This topic is of growing interest as wildfire has caused huge losses in recent years. Among all causes, lightning has always been the leading hazard. Unlike human related wildfires for which timber owners may be able to trace the responsible persons to claim losses, forestland owners essentially have no means to recover their losses against lightning-induced wildfire. In light of the fact that there are very few risk management instruments available to compensate timber losses. Following this line of inquiry, our paper studies risks of lightning induced wildfire, conditioning on crucial informational variables, across both spatial units and time periods. A non-parametric bootstrapping method is used to quantify the risks. Some relevant observable variables, such as environment and climate factors, are found to be statistically significant factors related to wildfire risks. A group index insurance scheme has been proposed and its associated actuarially fair premium rates have been estimated. Implications for wildfire management policies are also discussed.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeffrey P. Prestemon & David T. Butry, 2005. "Time to Burn: Modeling Wildland Arson as an Autoregressive Crime Function," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 756-770.
- Barry K. Goodwin & Ligia A. Vado, 2007. "Public Responses to Agricultural Disasters: Rethinking the Role of Government," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 55(4), pages 399-417, December.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea13:151285. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.