UNIVERSITY PARK, Pa. — Sizhuo Chen, doctoral candidate in energy, environment, and food economics, will give the talk, “The Impact of Wildfire Hazard Information Disclosure on Property Prices,” at noon on Wednesday, Oct. 23, in 157 Hosler Building on the University Park campus. The event is free and open to the public.

“As wildfires increasingly threaten individuals and structures, both safety concerns and economic concerns are rising in fast-developing fire-prone areas,” Chen said. “Given the connection between wildfire damage and residential development in high-risk zones, it is essential to understand individuals’ awareness of wildfire risks and whether home prices reflect such risks.”

Chen’s study investigates the impact of wildfire hazard disclosure during property transactions on property prices, focusing on homes near the boundaries of the very high fire hazard severity zones in southern California's Local Responsibility Areas. Utilizing CoreLogic home sales data and a geographical difference-in-discontinuities approach, his study analyzes transactions before and after the adoption period of fire hazard maps. Results indicate no significant local average treatment effects from disclosing wildfire hazards on home prices, suggesting that the current disclosure laws are ineffective in increasing risk salience. This study contributes to the literature on the effect of policy-based information treatments in a wildfire hazard context.

Chen’s research in environmental economics focuses on natural hazard adaptation and resilience from a socio-economic perspective, with a particular emphasis on wildfire hazards, land development and the housing market in the western United States. She earned her undergraduate degree from the Chinese University of Hong Kong in China and her master’s degree in economics from the University of Wisconsin-Madison.

The talk is part of the Initiative for Energy and Environmental Economics and Policy (EEEPI) fall Seminar Series. View more information on EEEPI.