Browsing School of Management by Subject "real property"
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The effect of wildfires, spruce bark beetles, and prescribed burns on residential property values in Alaska's Kenai PeninsulaThis study estimates the effect that forest fires, spruce bark beetle outbreaks, and controlled burns performed by fire management agencies have on nearby residential property values. Using the hedonic pricing framework, and ten years of house sales from south-central Alaska's Kenai Peninsula, this study found little evidence that wildfires and spruce beetle outbreaks have a significant effect on the final sale price of surrounding homes, but found that the controlled burns contribute to a decrease in surrounding home values. As Alaska's climate becomes warmer and drier, these disturbances threaten to increase in frequency and severity. Understanding how homeowners perceive fire risk and forest damage is increasingly important to fire management policy, as the behavior of residents can help limit both the cost from and incidence of wildfires. The study's findings suggest that homeowners are either insulated from, or indifferent to fire risk, but targeted burns of high-risk areas by fire managers could increase awareness and sensitivity to fire risk.