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Damages and Costs of Forest Wildfires in New Zealand Using Satellite Data

Author

Listed:
  • Elodie Blanc

    (Motu Economic and Public Policy Research)

  • Ilan Noy

    (Victoria University of Wellington
    Gran Sasso Science Institute)

Abstract

We estimate wildfire impacts on Aotearoa New Zealand forests, focusing specifically on impacts in terms of vegetation recovery and costs. To this end, we use satellite-derived imagery of fire intensity and a vegetation index to measure burn severity and vegetation recovery. We then calculate profitability costs and post-fire remediation and clearing costs, estimated under various wildfire intensity scenarios, to determine the total cost of wildfires. We conclude, maybe unsurprisingly, that forests subject to high-intensity fires take longer to recover than those suffering medium- and low-intensity fires. The economic cost is also higher for higher-intensity fires, averaging 18,000 NZ$/Ha, but due to the small relative share of high-intensity fires, it is the medium-intensity fires that cause the most economic damages in New Zealand.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:ediscc:v:8:y:2024:i:3:d:10.1007_s41885-024-00162-4
    DOI: 10.1007/s41885-024-00162-4
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    References listed on IDEAS

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    1. Yuanwei Qin & Xiangming Xiao & Jinwei Dong & Yao Zhang & Xiaocui Wu & Yosio Shimabukuro & Egidio Arai & Chandrashekhar Biradar & Jie Wang & Zhenhua Zou & Fang Liu & Zheng Shi & Russell Doughty & Berri, 2019. "Improved estimates of forest cover and loss in the Brazilian Amazon in 2000–2017," Nature Sustainability, Nature, vol. 2(8), pages 764-772, August.
    2. 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.
    3. Ba, Rui & Song, Weiguo & Lovallo, Michele & Zhang, Hui & Telesca, Luciano, 2022. "Informational analysis of MODIS NDVI and EVI time series of sites affected and unaffected by wildfires," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 604(C).
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    More about this item

    Keywords

    Wildfires; Economic costs; Remote sensing; Vegetation index; New Zealand;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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