nep-res New Economics Papers
on Resource Economics
Issue of 2025–01–06
three papers chosen by
Maximo Rossi, Universidad de la RepÃúºblica


  1. Accounting for Biodiversity Loss Raises the Social Cost of CO2 By Rennels, Lisa; Rennert, Kevin; Errickson, Frank; Anthoff, David; Wingenroth, Jordan; Prest, Brian C.
  2. From Catastrophe to Caution: The Effect of Wildfires on Community Hazard Mitigation Investments By Sølvsten, Simon; Whitlock, Zachary; Liao, Yanjun (Penny)
  3. Changing Hazards, Exposure, and Vulnerability in the Conterminous United States, 2020–2070 By Wear, David N.; Warziniack, Travis; O’Dea, Claire; Coulston, John

  1. By: Rennels, Lisa; Rennert, Kevin (Resources for the Future); Errickson, Frank; Anthoff, David; Wingenroth, Jordan (Resources for the Future); Prest, Brian C. (Resources for the Future)
    Abstract: Scientific evidence of the effects of climate change on biodiversity continues to accumulate. However, economic damages from biodiversity loss go unaddressed in recent updates of the social cost of carbon (SC-CO2), implicitly assigning biodiversity a zero-dollar value in federal climate policy analyses. Here we show that the value that society places solely on the existence of biodiversity, termed the nonuse value, contributes an additional $8 per tCO2 to the total. That contribution is on par with the contribution of global energy-use costs and exceeds the contribution of coastal infrastructure loss due to sea-level rise.
    Date: 2024–12–09
    URL: https://d.repec.org/n?u=RePEc:rff:dpaper:dp-24-23
  2. By: Sølvsten, Simon; Whitlock, Zachary (Resources for the Future); Liao, Yanjun (Penny) (Resources for the Future)
    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.
    Date: 2024–12–12
    URL: https://d.repec.org/n?u=RePEc:rff:dpaper:dp-24-25
  3. By: Wear, David N. (Resources for the Future); Warziniack, Travis; O’Dea, Claire; Coulston, John
    Abstract: Climate change reshapes natural resource systems and results in increased likelihood of wildfire, water scarcity, and heat stress, along with other adverse outcomes that define potential harm across a broad spectrum of locales in the United States. We evaluate 50-year, multiple-scenario projections of resource hazards and population change from the USDA Forest Service 2020 Resources Planning Act Assessment to identify areas of concern based on hazard exposure and social vulnerability criteria and to evaluate implications for climate adaptation and risk mitigation planning. We project how and where hazard exposure may change over the next 50 years and decompose these changes into the portion driven by climate changes and the portion driven by population changes—both of which prove consequential. Water shortage projections show little change in spatial distribution but strong growth in the intensity of anticipated droughts. Wildfire projections show a structural change in pattern, with emergent growth in wildfire extent in the southeastern United States coincident with higher population densities and social vulnerability. High heat areas expand toward the North and East from the Southwest. Projections also show substantial growth in areas affected by two or more hazards and highlight where hazards correspond with high exposure or high vulnerability. For all hazard categories and scenarios, at least 80 percent of the population exposed to high hazard is in either a high-vulnerability or high-exposure county. Our results highlight how management strategies would differ between those focused on mitigating the biophysical hazard alone and those that focus on mitigating exposure or vulnerability criteria.
    Date: 2024–12–03
    URL: https://d.repec.org/n?u=RePEc:rff:dpaper:dp-24-21

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