A willingness-to-pay function for protecting acres of spotted owl habitat from fire

Abstract

A contingent valuation survey was used to estimate the economic value to California and New England residents of implementing a fire management plan to reduce acres of old growth forests that burn in California and Oregon. Using a random effects probit model to account for the panel nature of the data, the average willingness to pay to reduce catastrophic fire on 2570 acres was $56 per household. Since acreage of habitat protected is a statistically significant variable in the willingness-to-pay function, this function can be used by managers to evaluate the incremental benefits of different fire management plans that reduce additional acres burned. These benefits can serve as justification for funding of prescribed fire and fuel reduction programs to protect critical habitat of the Northern and California Spotted Owl.