From Catastrophe to Caution: The Effect of Wildfires on Community Hazard Mitigation Investments
In this working paper, the authors examine the impact of wildfires on community-level hazard mitigation efforts, specifically focusing on participation in the Firewise USA program.
Abstract
This paper examines the impact of wildfires on community-level hazard mitigation efforts, specifically focusing on participation in the Firewise USA program. Using a panel dataset of ZIP Code Tabulation Areas in the western United States from 2002 to 2019, we find that wildfires significantly increase participation. However, the response is notably weaker in areas with higher shares of minority populations, suggesting that these communities face greater barriers to engaging in risk reduction efforts. The paper also explores the role of homeowners’ insurance, finding that Firewise participation can mitigate increases in insurance premiums after a wildfire, although it does not significantly affect the availability of coverage. The findings highlight the need for targeted support and coordination to enhance resilience in vulnerable communities.
Keywords: wildfires, risk mitigation, Firewise communities, homeowners’ insurance.
Authors
Simon Sølvsten
Director, European Center for Risk & Resilience Studies
