The effects of wildfire and environmental amenities on property values in northwest Montana, USA

This study employed the hedonic price framework to examine the effects of 256 wildfires and environmental amenities on home values in northwest Montana between June 1996 and January 2007. The study revealed environmental amenities, including proximity to lakes, national forests, Glacier National Par...

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Published in:	Ecological economics Vol. 69; no. 11; pp. 2233 - 2243
Main Authors:	Stetler, Kyle M., Venn, Tyron J., Calkin, David E.
Format:	Journal Article
Language:	English
Published:	Elsevier B.V 01.09.2010 Elsevier
Series:	Ecological Economics
Subjects:	Bushfire Environment Fire Forests Hedonic price method Hedonic price method Revealed preference Wildland-urban interface Non-market valuation Bushfire Housing prices Landscape Montana National parks Non-market valuation Recreation Revealed preference Revealed preferences U.S.A Valuation Wildland–urban interface USA, Montana, Glacier Natl. Park USA, Montana Revealed preference Wildland–urban interface Bushfire Hedonic price method Non-market valuation
ISSN:	0921-8009, 1873-6106
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Abstract	This study employed the hedonic price framework to examine the effects of 256 wildfires and environmental amenities on home values in northwest Montana between June 1996 and January 2007. The study revealed environmental amenities, including proximity to lakes, national forests, Glacier National Park and golf courses, have large positive effects on property values in northwest Montana. However, proximity to and view of wildfire burned areas has had large and persistent negative effects on home values. The analysis supports an argument that homebuyers may correlate proximity to and view of a wildfire burned area with increased wildfire risk. Indeed, when a burned area is not visible from a home, wildfire risk appears to be out of sight and out of mind for homebuyers. Findings from this research can be used to inform debate about efficient allocation of resources to wildfire preparedness, including public education programs, and suppression activities around the wildland–urban interface.
AbstractList	This study employed the hedonic price framework to examine the effects of 256 wildfires and environmental amenities on home values in northwest Montana between June 1996 and January 2007. The study revealed environmental amenities, including proximity to lakes, national forests, Glacier National Park and golf courses, have large positive effects on property values in northwest Montana. However, proximity to and view of wildfire burned areas has had large and persistent negative effects on home values. The analysis supports an argument that homebuyers may correlate proximity to and view of a wildfire burned area with increased wildfire risk. Indeed, when a burned area is not visible from a home, wildfire risk appears to be out of sight and out of mind for homebuyers. Findings from this research can be used to inform debate about efficient allocation of resources to wildfire preparedness, including public education programs, and suppression activities around the wildland-urban interface. This study employed the hedonic price framework to examine the effects of 256 wildfires and environmental amenities on home values in northwest Montana between June 1996 and January 2007. The study revealed environmental amenities, including proximity to lakes, national forests, Glacier National Park and golf courses, have large positive effects on property values in northwest Montana. However, proximity to and view of wildfire burned areas has had large and persistent negative effects on home values. The analysis supports an argument that homebuyers may correlate proximity to and view of a wildfire burned area with increased wildfire risk. Indeed, when a burned area is not visible from a home, wildfire risk appears to be out of sight and out of mind for homebuyers. Findings from this research can be used to inform debate about efficient allocation of resources to wildfire preparedness, including public education programs, and suppression activities around the wildland-urban interface. All rights reserved, Elsevier
Author	Venn, Tyron J. Calkin, David E. Stetler, Kyle M.
Author_xml	– sequence: 1 givenname: Kyle M. surname: Stetler fullname: Stetler, Kyle M. organization: College of Forestry and Conservation, The University of Montana, 32 Campus Drive, Missoula, MT 59812, USA – sequence: 2 givenname: Tyron J. surname: Venn fullname: Venn, Tyron J. email: tyron.venn@umontana.edu organization: College of Forestry and Conservation, The University of Montana, 32 Campus Drive, Missoula, MT 59812, USA – sequence: 3 givenname: David E. surname: Calkin fullname: Calkin, David E. organization: Rocky Mountain Research Station, USDA Forest Service, PO Box 7669, Missoula, MT 59807, USA
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SubjectTerms	Bushfire Environment Fire Forests Hedonic price method Hedonic price method Revealed preference Wildland-urban interface Non-market valuation Bushfire Housing prices Landscape Montana National parks Non-market valuation Recreation Revealed preference Revealed preferences U.S.A Valuation Wildland–urban interface
Title	The effects of wildfire and environmental amenities on property values in northwest Montana, USA
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