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Evaluating wildfire exposure: Using wellbeing data to estimate and value the impacts of wildfire

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  • Johnston, David W.
  • Önder, Yasin Kürşat
  • Rahman, Muhammad Habibur
  • Ulubaşoğlu, Mehmet A.

Abstract

This paper estimates the wellbeing effects of the 2009 Black Saturday Bushfires, the deadliest wildfire event in Australia’s known history. Using subjective wellbeing data from a nationally representative longitudinal study and adopting an individual fixed-effects approach, our results identify a significant reduction in life satisfaction for individuals residing in close proximity of the wildfires. The negative wellbeing effect is valued at A$52,300. This corresponds to 80% of the average annual income of a full-time employed adult in the state of Victoria. The satisfaction domain most negatively affected is how safe the person feels, and the group most affected are people with low social support. A delayed adverse mental health effect is also identified.

Suggested Citation

  • Johnston, David W. & Önder, Yasin Kürşat & Rahman, Muhammad Habibur & Ulubaşoğlu, Mehmet A., 2021. "Evaluating wildfire exposure: Using wellbeing data to estimate and value the impacts of wildfire," Journal of Economic Behavior & Organization, Elsevier, vol. 192(C), pages 782-798.
    • Handle: RePEc:eee:jeborg:v:192:y:2021:i:c:p:782-798
    DOI: 10.1016/j.jebo.2021.10.029
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    Cited by:

    1. Hazra, Devika & Gallagher, Patricia, 2022. "Role of insurance in wildfire risk mitigation," Economic Modelling, Elsevier, vol. 108(C).
    2. Sefa Awaworyi Churchill & Russell Smyth & Trong‐Anh Trinh, 2023. "Crime, Weather and Climate Change in Australia," The Economic Record, The Economic Society of Australia, vol. 99(324), pages 84-107, March.
    3. Balasooriya, Namal N. & Bandara, Jayatilleke S. & Rohde, Nicholas, 2022. "Air pollution and health outcomes: Evidence from Black Saturday Bushfires in Australia," Social Science & Medicine, Elsevier, vol. 306(C).
    4. Elodie Blanc & Ilan Noy, 2024. "Damages and Costs of Forest Wildfires in New Zealand Using Satellite Data," Economics of Disasters and Climate Change, Springer, vol. 8(3), pages 473-488, November.

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    More about this item

    Keywords

    Wildfires; Georeferencing; Life satisfaction;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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