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Treesearch

Economics of forest fire management: spatial accounting of costs and benefits

Formally Refereed
Download (PDF 4.10 MB): https://research.fs.usda.gov/download/treesearch/60145.pdf

Abstract

This study uses a non-market valuation method to investigate the recreation values of the San Jacinto Wilderness in southern California. The analysis utilizes survey data from a stated-choice experiment involving backcountry visitors who responded to questions about hypothetical wildfire burn scenarios. Benefits of landscape preservation are derived using a Kuhn-Tucker (KT) demand system. Model results suggest that recreationists are more attracted to sites with recent wildfires that can be viewed up-close. For example, recreational welfare estimates increased for sites that were partially affected by different types of wildfires, with the greatest gains being observed for the most recent wildfires. However, wildfires that cause trail closures create welfare losses. Seasonal losses for complete closure of particular sites range from $19 to $169.

Additionally, a latent class modification of the standard KT model is proposed as a method for incorporating unobserved heterogeneity in preferences, and for controlling for endogenous spatial sorting. Using the standard maximization likelihood technique, the latent class KT model suggests that two groups exist in the sample. The groups consist of “hiking enthusiasts” and “casual users.” The hiking enthusiasts take twice as many trips as casual users, but their estimated per-trip welfare is smaller. These results are consistent with Parsons (1991) argument that individuals with stronger preferences for recreation (“enthusiasts”) might choose to live closer to recreation sites they frequently visit to reduce their travel costs.

Citation

Sánchez, J. J. 2014. Economics of forest fire management: spatial accounting of costs and benefits. Riverside, CA: University of California, Riverside. 130 p. Ph.D. dissertation.