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| Lankoande, Mariam D.; Yoder, Jonathan K.; Wandschneider, Philip R.. |
| Contingent wildfire insurance and fuel management cost-sharing programs are becoming more prevalent in western states. This paper develops a model to examine the incentive effects of these two mechanisms for private investment in wildfire risk mitigation. The model shows that contingent insurance contracts strengthen incentives for risk mitigation relative to pooled contracts and subsidies induce more risk mitigation effort by reducing margin private costs of mitigation. With pooled insurance contracts, individuals in low-risk areas subsidize the premiums of individuals living in high-risk areas, inducing too much development in high-risk areas. Subsidies can improve incentives for risk mitigation, but they also may induce excessive development in... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Risk and Uncertainty. |
| Ano: 2006 |
URL: http://purl.umn.edu/21414 |
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| Lankoande, Mariam D.; Yoder, Jonathan K.. |
| Vegetative fuels management for wildfire risk mitigation is increasing recognized as a crucial complement to suppression. We develop a nested rotation model to examine the fuel treatment timing in the context of a forest environment where part of the values at risk are standing timber to be harvested. Simulations are performed for a representative ponderosa pine forest, and implications of the model for policy issues are discussed, including 1) the effects of public suppression of wildfire on private fuel management incentives, 2) externality problems when non-timber values such as wildland-urban interface property is not accounted for in private fuel management decisions. |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Resource /Energy Economics and Policy. |
| Ano: 2004 |
URL: http://purl.umn.edu/20007 |
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