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An Econometric Model of Wildfire Suppression Productivity

Author

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  • Mariam Lankoande
  • Jonathan Yoder

    (School of Economic Sciences, Washington State University)

Abstract

We estimate a model of suppression productivity for individual fires, where suppression productivity is measured in terms of the reduction in the estimated market value of wildfire losses. Estimation results show that at the margin, every dollar increase in suppression costs reduces resource damage by 12 cents, while each dollar invested in pre-suppression reduces suppression expenditures by 3.76 dollars. These results suggest that there is an over-allocation of fire management funds to suppression activities relative to prevention measures in terms of cost-effectiveness. This paper provides an empirical basis for a widely used economic model of wildfire management that seeks to minimize the sum of suppression costs and economic losses from wildfires, the cost plus net value change model of fire suppression (C+NVC).

Suggested Citation

  • Mariam Lankoande & Jonathan Yoder, 2006. "An Econometric Model of Wildfire Suppression Productivity," Working Papers 2006-10, School of Economic Sciences, Washington State University.
    • Handle: RePEc:wsu:wpaper:lankoande-2
    as

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    File URL: http://faculty.ses.wsu.edu/WorkingPapers/WP_2006-10Suppression.pdf
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    References listed on IDEAS

    as
    1. McFadden, Daniel & Ruud, Paul A, 1994. "Estimation by Simulation," The Review of Economics and Statistics, MIT Press, vol. 76(4), pages 591-608, November.
    2. Kennedy, Peter E, 1981. "Estimation with Correctly Interpreted Dummy Variables in Semilogarithmic Equations [The Interpretation of Dummy Variables in Semilogarithmic Equations]," American Economic Review, American Economic Association, vol. 71(4), pages 801-801, September.
    3. Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9780521848053, January.
    4. Bengt Muthén, 1984. "A general structural equation model with dichotomous, ordered categorical, and continuous latent variable indicators," Psychometrika, Springer;The Psychometric Society, vol. 49(1), pages 115-132, March.
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    Cited by:

    1. Mendes, Isabel, 2010. "A theoretical economic model for choosing efficient wildfire suppression strategies," Forest Policy and Economics, Elsevier, vol. 12(5), pages 323-329, June.
    2. Allen Molina & Joseph Little & Stacy Drury & Randi Jandt, 2021. "Homeowner Preferences for Wildfire Risk Mitigation in the Alaskan Wildland Urban Interface," Sustainability, MDPI, vol. 13(21), pages 1-11, October.
    3. Rollins, Kimberly S. & Kobayashi, Mimako, 2010. "Embedding a Field Experiment in Contingent Valuation to Measure Context-Dependent Risk Preferences: An Application to Wildfire Risk," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61870, Agricultural and Applied Economics Association.

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    More about this item

    Keywords

    wildfire suppression; productivity;

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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