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- Info
Assessing the benefits of wildfire risk reduction: A contingent valuation approach
| Author: |
Winter, Greg; Fried, Jeremy S. |
| Date: |
1997 |
| Periodical: |
In: Proceedings of the Society of American Foresters Nationnal Convention; Bethesda, MD: The Society of American Foresters |
| Abstract: |
The value of reductions in the risk of wildfire-induced structure loss was assessed for residents of a Michigan jack pine forest via the contingent valuation method. Using a joint probability model of fire risk, values for risk reduction accomplished by public and private actions were estimated separately. For both approaches, most participants expressed non-zero willingness to pay (WTP) to reduce risk from the status quo, despite nearly universal insurance coverage, suggesting the existence of significant extra-market components to fire losses. WTP for public risk reduction actions undertaken by state and local authorities depended on existing risk, perception of fire danger, perceived importance of the fire threat, and attitude towards property taxes. For those with non-zero WTP, amounts depended on property value and income. In this paper we describe the hypothetical market, summarize valuation results for private and public risk reduction markets, and present elements of a conceptual model of WTP for wildfire risk reductions. |
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