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Too many buildings built in areas of elevated fire danger, Public Goods,…
Too many buildings built in areas of elevated fire danger
Symptoms
Acres of land burned
Map depicting burned areas
Link Title
Number of houses lost
Number of lives lost
Air quality decreases
https://www.airnow.gov/state/?name=california
Consequences
Increase in probability of potential fire outbreaks.
"The vicious circle of housing overcrowding and fire holds serious implications with respect to other density dependent factors, such as public health, the public transportation system, and sanitation."
[Source](
https://journals.sagepub.com/doi/abs/10.1068/a160249?journalCode=epna
Respiratory problems stemming from smoke inhalation
Increase in death rate
Increased medical expenses
Source
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3628485/#:~:text=In%20summary%2C%20the%20wildfires%20caused,to%20the%20pollutants%20of%20wildfires
.
Decreased value of homes in the area
Greater strain on resources
Fire fighting
Building maintenance
Cost to city overall
Link Title
Decreased air quality
Fire risk increased by greater concentration of buildings
probability of having a house fire
greater damage done by fire
Decreased soil quality
Decreased agricultural output
Food shortages
Causes
Preferences
Areas are desirable and simultaneously high fire risk
Higher priced/ lower desirability of surrounding areas leads people to this area
Jobs are available in this area due to high population level
Environmental Factors
Climate Change leading to decreased precipitation
Drought
Problem as a market failure
Information Asymmetry
People may not be aware of the risks when moving into the area
Rivalry in consumption - Limited availability of fire departments.
"a large share of the costs of fighting wildfires is spent trying to prevent damage to private homes that are built in hi
gh fire-risk areas near federal and state lands"
Source: National Bureau of Economic Research
Externalities
Negative externality: individuals from surrounding areas are negatively impacted by smoke and fire damage
Deadweight loss
consumer surplus lost through building destruction
producer's initial investment does not yield expected return
Overall and local movement speeds during fire drill evacuations in buildings up to 31 stories
Public Goods
Sources
