Contribution to the investment evaluation in terms of the forest fires prevention using the cost-benefit analysis method

Abstract

Purpose The purpose of this paper is to valorize the contribution of the cost-benefit analysis (CBA) method in the evaluation of the prevention measures of forest fires. Design/methodology/approach The suggested approach is based on the economic analysis of the forest fires’ risks using the CBA which has become inevitable in risk analysis’ domain. Findings The suggested approach shows the interest of the CBA method in the sense that each reduction measure of the forest fires’ risk eliminates the potential damages and, therefore, it is likely to generate benefits for the company in terms of avoided damages on the territory that is concerned by these measures. Practical implications It consists in comparing on time, the benefit generated by a reduction measure of a forest fires’ risk and its implementation cost. This comparison gives an important focus on the economic relevance of such a reduction measure of forest fires’ risk. Originality/value The question is to highlight the importance of both: the investment in terms of forest fires and the allocation of this investment on various preventive measures of forest fires.