Abstract
We estimate wildfire impacts on Aotearoa New Zealand forests, focusing specifically on impacts in terms of vegetation recovery and costs. To this end, we use satellite-derived imagery of fire intensity and a vegetation index to measure burn severity and vegetation recovery. We then calculate profitability costs and post-fire remediation and clearing costs, estimated under various wildfire intensity scenarios, to determine the total cost of wildfires. We conclude, maybe unsurprisingly, that forests subject to high-intensity fires take longer to recover than those suffering medium- and low-intensity fires. The economic cost is also higher for higher-intensity fires, averaging 18,000 $/Ha, but due to the small relative share of high-intensity fires, it is the medium-intensity fires that cause the most economic damages in New Zealand.
JEL Codes: Q23, Q54