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Total cost of fire in Australia

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  • Brian Ashe
  • K. J. McAneney
  • A. J. Pitman

Abstract

Fire, an ever present hazard in Australia, causes approximately 100 fatalities and over 3000 injuries per annum. Significant resources are allocated to mitigate the risk. In this study, we estimate the total cost of fire in Australia for 2005 at AUD$12,000 million or 1.3% of GDP. Comparable studies in the UK, USA, Canada, Denmark and New Zealand are reviewed and show that the cost in these countries ranges between 0.8 and 2% of GDP. Breaking the Australian total down into its component parts, we find that 57% relates to costs in anticipation of fire, 29% for response activities and that the remaining 14% results from the consequences of fire. This estimate shows that the investment in mitigation (86% of the total costs) is over five times the consequences (14%) and raises questions as to whether the current system adopted in Australia is economically efficient.

Suggested Citation

  • Brian Ashe & K. J. McAneney & A. J. Pitman, 2009. "Total cost of fire in Australia," Journal of Risk Research, Taylor & Francis Journals, vol. 12(2), pages 121-136, March.
    • Handle: RePEc:taf:jriskr:v:12:y:2009:i:2:p:121-136
    DOI: 10.1080/13669870802648528
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    References listed on IDEAS

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    1. Brand, Sam & Price, Richard, 2000. "The economic and social costs of crime," MPRA Paper 74968, University Library of Munich, Germany.
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    Cited by:

    1. Jason J. Sharples & Geoffrey J. Cary & Paul Fox-Hughes & Scott Mooney & Jason P. Evans & Michael-Shawn Fletcher & Mike Fromm & Pauline F. Grierson & Rick McRae & Patrick Baker, 2016. "Natural hazards in Australia: extreme bushfire," Climatic Change, Springer, vol. 139(1), pages 85-99, November.
    2. Kerianne Lawson, 2022. "Electricity outages and residential fires: Evidence from Cape Town, South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 90(4), pages 469-485, December.
    3. Oliveira, A.S. & Soares-Filho, B.S. & Oliveira, U. & Van der Hoff, R. & Carvalho-Ribeiro, S.M. & Oliveira, A.R. & Scheepers, L.C. & Vargas, B.A. & Rajão, R.G., 2021. "Costs and effectiveness of public and private fire management programs in the Brazilian Amazon and Cerrado," Forest Policy and Economics, Elsevier, vol. 127(C).

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