Forestry Economics

Lab Seminar: Modeling externalities from forest management and fire mitigation

Frederik Strabo presented preliminary work modeling how competition between adjacent landowners can shape their incentives to invest in forest fire prevention. The combination of historical land use practices and climate change have greatly increased the risk and severity of forest fires. Landowners can mitigate these risks by investing in costly interventions like forest thinning. They can also adjust to these risks by changing when (and if) they harvest the trees in their forests.