Addressing the private wildfire risk mitigation paradox in a climate-altered wildland urban interface

Increased climate variability is anticipated to increase the length and severity of wildfire seasons in the Western U.S. The continued expansion of the Wildland Urban Interface (WUI) compounds the threat homeowners living in these regions face from wildfire. Subsequently, there is a defined need to identify policy options that encourage WUI homeowners to undertake wildfire risk mitigation actions. Such behaviors not only reduce risk to the homeowner but to their neighbors as well. This chapter presents findings from a set of computerized economic experiments designed to examine the effectiveness of using costsharing and contingent insurance regimes to incentivize homeowner mitigation. Results suggest that, while the policy treatments were effective in increasing the probability, an experiment subject undertook at least some mitigation, there was "crowding out" under the treatment regimes. The dissemination of information on subject mitigation actions is shown to mute the potential for "crowding out".