The economic value of fire damages in Tuscan agroforestry areas

C. Fagarazzi, R. Fratini, M. Montanino and F. Riccioli

No 275658, 2018 Seventh AIEAA Conference, June 14-15, Conegliano, Italy from Italian Association of Agricultural and Applied Economics (AIEAA)

Abstract: The Tuscan Region spends about 12 million euro every year in the prevention and suppression of forest fires. In this context, this study aims to verify the economic and environmental benefits derived from the activities of the prevention and suppression of fires. Starting from a case study of a real fire event in Tuscany, we have simulated three hypothetical scenarios (with different fire durations) without fire extinction activities planned. These hypothetical scenarios have been obtained using the open source software FARSITE, and georeferred data concerning meteorological data, territory and forest characteristics were used to run the three simulations. A monetary approach to the quantification of avoided damage thanks to fire extinction activities has been applied. Quantification of the economic avoided damage has been calculated through the estimation of the total economic value of forest destroyed by fire. Total economic value is represented by the value of economic and environmental benefits provided by the forest (ecosystem services). Total economic values of forest surfaces burned by real event and simulated fire have been calculated: the difference between these values represent the avoided damages (from an environmental point of view) thanks to fire extinction activities. The completely avoided damage was calculated in a second phase by considering the real estate values of buildings that the extinction activities had protected and safeguarded. The results achieved confirm how forest fire services and forest management are important from both economic and environmental points of view.

Keywords: Agricultural; and; Food; Policy (search for similar items in EconPapers)
Pages: 15
Date: 2018-07-21
New Economics Papers: this item is included in nep-env
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aiea18:275658

DOI: 10.22004/ag.econ.275658

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