Value + risk · Week 12

Valuing nature + wildfire risk

Resume Lecture 7 at page 41 with travel cost and recreation demand, then practice valuation methods in Classwork 7. Lecture 8 introduces wildfire risk and examines how development and mitigation choices affect expected losses.

Nov 9–13Lecture 7 · Begin at page 41TL Chs. 4 and 12

Focus

  • Revealed preferences and benefit transfer
  • Wildfire hazard, exposure, and vulnerability
  • Prevention and mitigation trade-offs

Prepare

  • Resume Lecture 7 at page 41 and continue TL Chapter 4
  • Read The Economics of Wildfire Risk and Smoke alongside TL Chapter 12
  • Review present value and opportunity cost

Practice

  • Interpret evidence from travel and housing choices
  • Identify how development affects exposure to fire
  • Compare mitigation costs and uncertain wildfire losses

Guiding question

How can valuation evidence help us compare the costs and benefits of reducing wildfire losses?

Learning targets

  • Explain how travel cost and hedonic pricing use observed choices to estimate environmental values.
  • Assess when a valuation estimate can be transferred to a different setting.
  • Distinguish wildfire hazard, exposure, vulnerability, and loss.
  • Explain how development and mitigation choices can affect wildfire risk.
  • Compare the costs of mitigation with uncertain future losses.

Lecture slides

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Lecture 7 · Valuing the Environment: MethodsBegin at page 41
Lecture 8 · Wildfire Risk, Smoke, and InsuranceView slides

This week’s materials

TL refers to Tietenberg and Lewis, Natural Resource Economics: The Essentials, 2nd edition. Chapter numbers on this page follow that edition, not the larger Environmental and Natural Resource Economics textbook.

Continue TL Chapter 4 — Valuing the Environment: Methods — and read the wildfire adaptation material in Chapter 12 — Climate Change: Adaptation: Floods, Wildfires, and Water Scarcity.

Lecture 7Begin at page 41 · Valuing the Environment: Methods Classwork 7Valuing Nature: Multiple-Choice Questions Lecture 8Wildfire Risk, Smoke, and Insurance ReadingThe Economics of Wildfire Risk and Smoke

Coming next

Week 13 connects wildfire risk to Insurance + Resilience, including risk sharing, affordability, mitigation incentives, and recovery.

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