Do Repeated Wildfires Change Homebuyers’ Demand for Homes in High-Risk Areas? A Hedonic Analysis of the Short and Long-Term Effects of Repeated Wildfires on House Prices in Southern California

Mueller, Julie M.; Loomis, John B.; González-Cabán, Armando

doi:10.1007/s11146-007-9083-1

Cited by 100 publications

(52 citation statements)

References 14 publications

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“…Our data are limited to one wildfire and post‐wildfire flooding event. Studies estimating the impact of multiple events remain less common (Mueller et al, ) and are an area of further research. Coconino County and its partners spent over $30 million following the Schultz Fire to protect communities from future flood danger (Coconino, County, ).…”

Section: Discussionmentioning

confidence: 99%

Using Matching Methods to Estimate Impacts of Wildfire and Postwildfire Flooding on House Prices

Mueller

Lima

Springer

et al. 2018

Water Resources Research

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The increasing frequency and severity of landscape‐scale wildfire poses new challenges for forested watershed management. The Schultz Fire burned 6,100 ha on the steep slopes of San Francisco Mountain near Flagstaff, AZ, USA in 2010. Within a month of the wildfire, summer monsoon rains created flooding and debris flows 1–2 orders of magnitude greater than prewildfire rainfall events. We estimate a hedonic property model to determine the loss in house prices from the wildfire and postwildfire flooding. While several studies examine the effects of wildfires and flooding on housing prices separately, to our knowledge, no study has determined the effects of postwildfire flooding in a fire‐adapted watershed. Most hedonic property models estimating impacts of wildfire or flooding use regression analysis to predict impacts. We also contribute to the hedonic property model literature by using nonparametric matching techniques. We find a negative and statistically significant average treatment effect of wildfire and post‐wildfire flooding. The treatment effect, however, differs relative to distance to wildfire perimeter and distance to flood zones. For example, houses located within 5 km of the Schultz Fire perimeter have an estimated 31% loss, while houses within 20 km have an estimated 6% loss. In addition, prices for houses located within 100 m of the 5‐year flood drop by 10% after the flood, whereas prices for houses within 2 km drop by 5%. Our results indicate that careful consideration of the impacts of both wildfire and postwildfire flooding is essential for understanding the net benefits of forested watershed restoration.

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Section: Discussionmentioning

confidence: 99%

Using Matching Methods to Estimate Impacts of Wildfire and Postwildfire Flooding on House Prices

Mueller

Lima

Springer

et al. 2018

Water Resources Research

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“…However, those non-water related facilities end up with statistically insignificant results. These may suggest that there is no use for adding those none water-related recreation activities or facilities such as kid playground and fun fair to the coastal parks because they may play a role in detract not adds to the visitors' satisfaction (Loomis & Richard, 1997;Mueller et al, 2009).…”

Section: Discussionmentioning

confidence: 99%

Effects of the Coastal Park Environment Attributes on Its Admission Fee Charges

Wang

Zhu

2016

MATEC Web Conf.

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Abstract. In this paper, we investigate the effect of those recognized nature-and-activity-based attributes on the level of park's admission fee charges using a panel data of 29 coastal recreation parks in Dalian city of China. A total of seven different Hedonic pricing model specifications are used in the estimating process. The results indicate that a numerous attributes have statistically significant effects (α≤ 0.10) on the level of park admission fee charges. In terms of the economic valuation, the marine sightseeing results in the highest value of Marginal Willingness to Pay (MWTP) of $6.4 as its quality rank improves to a designated higher level. As expected that the park congestion has a negative effect on the MWTP (-$0.47) and overall park's rankings have a positive effect ($0.05) on park's MWTP. However, many recreation activities accommodated by the park sites exhibit a relatively weak effect on the park entrance fee charges. One possible reason is perhaps owing to the single admission package fee policy adopted by the park management..

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“…Individual tolerance for fire risk can impact land use change. Economic studies [24,25] of land use change have shown that some risk averse landowners are less likely to develop fire prone areas, although this aversion is often balanced by the fact that many fire prone areas also have natural amenities that are desired by home owners (for instance fire prone steep slopes may also offer wonderful views) [26,27]. While it is a common assumption in many fire prone areas that landowners typically rebuild after a fire, empirical evidence suggest that this is not always the case, and indeed a re-wilding of some previously subdivided land may take place after fires [28].…”

Section: Fire Risk and The Management Of Fire Risk As Drivers Of Landmentioning

confidence: 99%

“…In some municipalities local zoning has made these areas out of bounds for development, while in others it may be more difficult for developers to insure homes built in VSFH zones. While this policy has been criticized as not being strong enough to deter land use change [24,31], the intention of the regulation was to do just that.…”

Section: Fire Risk and The Management Of Fire Risk As Drivers Of Landmentioning

confidence: 99%

Land Use and Wildfire: A Review of Local Interactions and Teleconnections

Butsic

Kelly

Moritz

2015

Land

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Abstract:Fire is a naturally occurring process of most terrestrial ecosystems as well as a tool for changing land use. Since the beginning of history humans have used fire as a mechanism for creating areas suitable for agriculture and settlement. As fires threaten human dominated landscapes, fire risk itself has become a driver of landscape change, impacting landscapes through land use regulations and fire management. Land use changes also influence fire ignition frequency and fuel loads and hence alters fire regimes. The impact of these changes is often exacerbated as new land users demand alternative fire management strategies, which can impact land cover and management far from where land use change has actually occurred. This creates nuanced land use teleconnections between source areas for fires and economic cores, which demand and fund fire protection. Here we will review the role of fire and fire risk as a driver of land use change, the ways land use changes impact drivers of fire, and suggest that the integration of land use teleconnections into the fire/land use discussion can help us better understand and manage the complex interactions between fire and land use.

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Do Repeated Wildfires Change Homebuyers’ Demand for Homes in High-Risk Areas? A Hedonic Analysis of the Short and Long-Term Effects of Repeated Wildfires on House Prices in Southern California

Abstract: Hedonic property method, Forest fires, Implicit prices, Willingness to pay,

Cited by 100 publications

References 14 publications

Using Matching Methods to Estimate Impacts of Wildfire and Postwildfire Flooding on House Prices

Using Matching Methods to Estimate Impacts of Wildfire and Postwildfire Flooding on House Prices

Effects of the Coastal Park Environment Attributes on Its Admission Fee Charges

Land Use and Wildfire: A Review of Local Interactions and Teleconnections

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