Doctoral Dissertations

Date of Award

12-1975

Degree Type

Dissertation

Degree Name

Doctor of Philosophy

Major

Agricultural Economics

Major Professor

M. B. Badenhop

Committee Members

Brady J. Deaton, Charles L. Cleland, Tom S. Jensen

Abstract

Little attention has been given to the provision of fire services in most rural Tennessee areas, where these services are virtually nonexistence or severely inadequate. Recognizing this problem of inadequate fire protection services in the rural areas, this study was undertaken with the following objectives: (1) to review the fire protection services available in the rural areas of Tennessee; (2) to obtain information on the need for fire protection services for rural residents and for businesses and institutions in rural areas; and (3) to develop fire protection service alternatives for rural areas which would provide for different levels of fire protection. Several agencies which have fire prevention and protection responsibilities within the state government were investigated to determine the impact or potential impact they could have on the delivery of rural fire prevention and protection services. The fire services offered by the municipalities of Putnam and White counties, which were selected for specific study, were reviewed. The two principal functions of the Insurance Services Office—the grading of municipalities on their fire defenses and the establishing of fire insurance rates—were reviewed. The legal framework for providing county-wide fire prevention and protection services was also examined. Data for accomplishing objectives two and three were collected by means of two rural surveys and numerous interviews with officials and persons associated with fire protection services. No fire insurance coverage or the lack of fire insurance coverage and the estimated fire losses for rural structures and contents were used to reflect the need for fire protection services. The results indicated that many rural property owners in Putnam and White counties do not have adequate fire insurance coverage or have no fire insurance coverage. Data on adjusted fire insurance premiums together with state-wide fire loss ratios were used to estimate annual fire losses for the two counties. The results indicated that almost 50 percent of the estimated fire losses were not covered by fire insurance. To provide for different levels of fire protection, three alternatives (the minimum service alternative, the insurance reduction alternative, and the full service alternative) were analyzed. Six options were considered under the first two alternatives. The full service alternative was developed with changes in the water system. A method of estimating fire loss savings was devised which made use of the estimated fire loss data and data collected from fire chiefs. Fire loss savings were estimated for all three alternatives. In addition, fire insurance premium savings were estimated for the insurance reduction alternative and the full service alternative. The initial outlay costs and the annual operating costs were estimated for each of the counties separately and for the counties combined (except for the full service alternative). Benefit/cost ratios and the present values of the net benefits were calculated for all the options under the various alternatives at a 6 percent discount rate. The benefit/cost ratios were computed in order to determine which option would give the greatest amount of benefits for each dollars of costs and the present values of the net benefits were computed in order to determine which option would maximize the total net benefits (fire loss and fire insurance premium savings). This was done for each county separately and for both counties combined. Sensitivity analysis was used to determine if the recommended options of the two criteria would change. A simple location-allocation model was used to locate the fire stations needed as a result of utilizing the benefit-cost criterion. Possible fire station location sites were selected and focal or demand points were established. The site which minimized the total travel distance was considered as the one that should be selected.

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