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Economic analysis of prescribed burning for wildfire management in Western Australia

Author

Listed:
  • Florec, Veronique
  • Pannell, David J.
  • Burton, Michael P.
  • Kelso, Joel
  • Mellor, Drew
  • Milne, George

Abstract

Wildfires can cause significant damage to ecosystems, life and property, and wildfire events that do not involve people and property are becoming rare. With the expansion of the rural–urban interface in Western Australia and elsewhere, objectives of life and property protection become more difficult to achieve. We applied the cost plus net value change (C+NVC) model to a synthetic landscape, representative of the northern jarrah forest of the south west of Western Australia. The most economically efficient level of prescribed burning corresponds to a strategy where 5% of the simulated landscape is prescribed-burned per year. Our results are sensitive to changes in the average cost per hectare of prescribed burning, the probabilities of fire occurrence, urban area values (in average dollars per hectare) and suppression costs.

Suggested Citation

  • 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.
  • Handle: RePEc:ags:uwauwp:135305
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    File URL: http://purl.umn.edu/135305
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    References listed on IDEAS

    as
    1. 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.
    2. Richardson, Leslie A. & Champ, Patricia A. & Loomis, John B., 2012. "The hidden cost of wildfires: Economic valuation of health effects of wildfire smoke exposure in Southern California," Journal of Forest Economics, Elsevier, vol. 18(1), pages 14-35.
    Full references (including those not matched with items on IDEAS)

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    Keywords

    wildfire; fire management; economic analysis; cost plus net value change.; Environmental Economics and Policy; Land Economics/Use; Q0;

    JEL classification:

    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General

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