Comprehensive Study on the Economic and Social Benefits of Fire Prevention

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Comprehensive Study on the Economic and Social Benefits of Fire Prevention
REPORT

Comprehensive Study on the
Economic and Social Benefits
     of Fire Prevention

          François Delorme
          Dave Waterhouse
Comprehensive Study on the Economic and Social Benefits of Fire Prevention
ACKNOWLEDGEMENTS

This project originated from an exchange of ideas with Ms. Chantal Bibeau, Division Head of Prevention, Service de
sécurité incendie de Laval (Laval Fire Services), on enhancing fire prevention. We thank her for being the first driving
force behind this study. The Service de sécurité incendie de Laval (SSIL) (called the Laval Fire Services in this document),
the service incendie de la MRC de La Matapédia (called the MRC de La Matapédia Fire Services in this document), the
Quebec Ministry of Public Security and the Association des gestionnaires en sécurité incendie et civil du Quebec (AGSICQ)
(called the Quebec Association of Fire and Civil Safety Manager in this document) collaborated closely in the development
of the mandate and the financing of this study. We warmly thank these organizations for their trust and their vision.

We must also mention the invaluable research work contributed by the following individuals:

Ms. Camille Lajoie, Bachelor degree in economics and a master’s candidate in Applied Economics. She is completing a
mandate at the National Research Council of Canada.

Ms. Dominique St-Hilaire, fire prevention inspector, Laval Fire Services and Mr. André Verreault, fire prevention
firefighter, MRC de La Matapédia Fire Services, for mining and cleaning the data from their respective fire services. Also,
Ms. Myriane Desjardins and Ms. Juliane Jalbert, both fire prevention inspectors at the Laval Fire Services.

We also extend our gratitude to the following individuals for their invaluable support in the current study:

For the Laval Fire Services: Mr. René Daigneault, retired Director, Mr. Patrick Taillefer, Director and Ms. Véronic Maheu,
Fire Prevention Chief.

For the MRC de La Matapédia Fire Services: Mr. Ghislain Paradis, Director.

For the Quebec Ministry of Public Security: Mr. Dany Lechasseur, Fire Safety Advisor, Analysis, Consulting and
Inspection Team, Fire Safety Service.

Mr. Sylvain Mireault, Director General of the Quebec Association of Fire and Civil Safety Manager and
Co-Presidents Mr. Jean Melançon and Mr. Jean Bartolo.

Ms. Hélène Simard, linguistic reviser and Mr. Dominic Blais, graphic designer.

We would also like to highlight the essential contribution of community organizations and volunteers who
provide relief to disaster victims, such as the Canadian Red Cross and Urgence sociale Laval (called Laval Social
Emergency in this document). These organizations generously collaborated in the data collection for this study. We also
want to mention the forecasters of the Laval Fire Services and the MRC de La Matapédia Fire Services, to whom we owe
the demonstrated results in this study, thanks to their rigorous work and professionalism.

In closing, our thoughts go out to our respective families. Without their unwavering support, this study could not have
been completed.

ISBN No: 978-2-9817536-8-7
Copyright: Association des gestionnaires en sécurité incendie et civile du Québec (AGSICQ)
Publication August 2nd 2021
Comprehensive Study on the Economic and Social Benefits of Fire Prevention
EXECUTIVE SUMMARY

The Association des gestionnaires en sécurité incendie et civile du Quebec
(AGSICQ) (Quebec Association of Fire and Civil Safety Managers) and
the Quebec Ministry of Public Security joined forces to produce a study
whose objective is to promote overall fire prevention, by demonstrating
the economic and social benefits for citizens.

For this study, two fire services volunteered as case studies; these included the Laval Fire Services and the MRC de La Matapédia
Fire Services.

                                 Comprehensive Study on the Economic and Social Benefits of Fire Prevention | 1
Comprehensive Study on the Economic and Social Benefits of Fire Prevention
The study concluded that it is statistically shown that a 1% investment increase in fire prevention produces the following results:

                                                       1% investment increase in fire prevention
                                                                      Part 1
                                    Average
                                                                Economic benefits:                                              Part 2
                                investment value
                                                              preservation of average                                       Social benefits
                                equivalent to 1%
                                                                  property value
                                                                                                     • Number of evacuees - type 1 (- 24 h) ↑ 3,3%
                                                                                                     • Number of evacuees - type 2 (+ 24 h) ↑ 2,9%
 Laval Fire Services
                                       $2 267                      ↑ 0,5% = $130M                    • Number of injured civilians ↑ 0,3%
 (2006-2019)
                                                                                                     • Number of deaths ↓ 0,8%
                                                                                                     • Number of injured firefighters ↓ 0,9%
                                                                                                     • Number of evacuees ↑ 0,2%
 MRC de
 La Matapédia Fire                                                                                   • Number of injured firefighters ↓ 0,1%
                                         $341                       ↑ 0,3% = $37M
 Services                                                                                            • Regional labour market ↑ 10%
 (2006-2019)
                                                                                                     • Median income for the region ↑ 3%
Note: The average values of investments devoted to prevention are respectively $226,719 for the SSIL and $34,140 for the fire department of the MRC de La Matapédia.

It has now been demonstrated that fire prevention efforts have convincing and proven economic and social benefits for the safety
of citizens.

For each fire service studied, the amounts invested in fire prevention generate demonstrated value for citizens, by preserving property
assets and having a direct impact on the economic and social variables, such as deaths, injuries, regional employment and median
income. The economic impact of prevention investments is undeniable, predictable, sustainable, and the results are spread over a long
period of time with consistency.

In conclusion, it is risky to establish a unduly simple relationship between the desire to increase prevention investments funded by cuts in
intervention capacity or vice versa. What can be perceived as a duality by elected officials or the members of the fire services themselves,
must be considered as the complementarity of a service prior to the emergency call and following this call. This complementarity does
exist and will always exist, so that each fire service benefits from risk coverage and optimal service, for the safety of the population and
corporate citizens.

                                        2 | Comprehensive Study on the Economic and Social Benefits of Fire Prevention
Comprehensive Study on the Economic and Social Benefits of Fire Prevention
Table of contents
Executive Summary .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 1
1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2 Objective of the Study .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 9
3 Scope and Limits of the Study .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 11
4 Introduction of the Two Sample Fire Services .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 13
5 Literature Overview  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 15
6 Part 1: Measurement of the Economic Benefits of Fire Prevention in Disaster Reduction .  .  .  .  .  .  .  .  .  .  .  .  .  . 17
  6.1 Methodology  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  18
  6.2 Data for the Laval Fire Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  18
  6.3 Results for the Laval Fire Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  19
  		   6.3.1 Statistical Report for the Laval Fire Services  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  21
  		   6.3.2 Economic Benefits for the Laval Fire Services  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  23
  6.4 MRC de La Matapédia Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  24
  6.5 MRC de La Matapédia Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  24
  		   6.5.1 MRC de La Matapédia Statistical Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  25
  		   6.5.2 Economic Benefits for the MRC de La Matapédia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  27
7 Part 2: Measurement of the Economic and social Impact of Fire Prevention Investments  .  .  .  .  .  .  .  .  .  .  .  .  . 29
  7.1 Methodology  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  29
  7.2 Data for Laval Fire Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  30
  7.3 Results for Laval Fire Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  30
  7.4 Results for the MRC de La Matapédia  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  31
  7.5 MRC de La Matapédia Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  32
8	
  Exploratory Section: Additional Calculation of the Economic Benefits of Prevention and
  the Operations of a Fire Service  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 35
  8.1 SCILL Equation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  35
  8.2 QTN: Ratio of Property Saved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
9 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
10 Appendices .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 45
   I. Abbreviations and acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  45
   II. Sample Fire Services  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  46
   III. Literature Review  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  54
   IV. Detailed Description of the Variables Used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  59
   V. Description of the Methodology Used to Calculate the Economic and social Impact of Fire Prevention  . . . . . . . .  61
   VI. Definition of Types 1 and 2 Evacuees for Part 2  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  63
   VII. Comparative Analysis of the Various Studies on the Economic Impact of Operational Activities . . . . . . . . . . . . . .  66
   VIII. Statistical Value of Human Life and an Evacuee  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  67

                                                  Comprehensive Study on the Economic and Social Benefits of Fire Prevention | 3
Comprehensive Study on the Economic and Social Benefits of Fire Prevention
INTRODUCTION
Comprehensive Study on the Economic and Social Benefits of Fire Prevention
1. Introduction
For a long time, fire services of all types have been considered an
expensive essential service, a kind of compulsory insurance that
all societies can or must afford to protect the lives, property and
environment of the community. The challenge is then to understand
which strategic orientations enable the fire service to achieve its mission
in the most efficient way possible, taking into consideration the risks
to be covered in a territory.

The evolution of fire services is closely linked to the evolution                   Not all fire services have the same resources. Also, fire prevention
of built heritage, technological risks and the needs of society in                  initiatives are undertaken locally, such as the implementation of
general. As things change more quickly than the fire service can                    building and operating codes, frequent home prevention visits or
adapt, it can question which activities will have the greatest added                fire station open houses where safety advice can be shared with
value with regards to its mission.                                                  citizens. Organizations with more resources can implement more
                                                                                    sophisticated prevention initiatives, such as developing disaster
In all areas of society, prevention has been shown to reduce                        prediction models with deep learning algorithms, which lead to
the risk of unsafe behaviour, risk of damage or failures leading                    more effective risk management across the entire territory served
to unfortunate events. For example, the risk of cardiovascular                      and renders the planning prevention actions more effective.
disease can be reduced through prevention, by educating people
as early as possible about the effects of poor lifestyle habits, such               Appropriate fire prevention investments make it possible to
as poor diet and physical inactivity. Prevention campaigns to raise                 anticipate that when a fire occurs in a building, individuals can
awareness relating to the effects of drugs, fatigue and drinking                    escape, firefighters can intervene in a safe manner and the
and driving, combined with coercive measures, have been                             fire, to use this disaster as an example, has a more limited
considerably effective in reducing the number of road deaths in                     destructive power. From the design and construction of a building,
Quebec, despite the increased number of vehicles.                                   including its management and the behaviour of its inhabitants,
                                                                                    fire prevention is taken into account at all levels to ensure
The Quebec Ministry of Public Security and the Quebec                               public safety. Fire prevention extends beyond the building’s
Association of Fire and Civil Safety Managers wanted to                             safety measures because it also takes into consideration human
demonstrate that the added value of fire prevention initiatives                     behaviour, which can be responsible for a fire. Human reaction
extends well beyond the amounts invested, because they have                         to a disaster is an important aspect to consider when prevention
a concrete, measurable and consistent impact over time.                             activities target the public, regardless of their socio-demographic
                                                                                    characteristics.
In the field of ​​fire and life rescue in general, the more
interventionist North American model is achieving its goals and                     It should be noted that decision-making regarding the orientations
fulfilling the mission of fire services in general. However, the                    of fire prevention programs and regulatory updates begins with
global trend demonstrated in research work published in the                         a rigorous and well-documented investigation process in case
World Fire Statistics1Bulletin and already adopted by some public                   of disasters. This step makes it possible to build an essential
administrations (notably South Korea and Japan) is increasingly                     database for decision-making.
towards a model that promotes action prior to an emergency call,
that is, at the prevention stage.

1   See the literature review in Appendix III.

                                          Comprehensive Study on the Economic and Social Benefits of Fire Prevention | 5
Comprehensive Study on the Economic and Social Benefits of Fire Prevention
In this study, we focus on resources and activities related                 This study therefore radically changes the paradigm of fire
to disaster prevention, from an overall risk mitigation                     prevention as a whole. The results suggest that investing in
perspective; prevention helps to limit the number of fires                  pre-disaster prevention creates a net positive benefit in
in residential buildings and reduce the loss of human life                  reducing the number of fires, deaths and injuries, and
and injuries to citizens and responders.                                    this, despite the increase in built heritage and population
                                                                            over time.
Part 1 of this study focuses on what fire prevention can preserve,
even in advance of the occurrence of disasters in buildings.                Firefighters in fire stations who intervene on the front line
Part 2 measures the economic and social impact of prevention                will always be required in the event of disasters and medical
activities, which can reduce the number of deaths and increase              emergencies. The economic benefits of the operational activities
the number of evacuees in a residential building fire. An                   of fire services have repeatedly been demonstrated, calculated
exploratory section was added; it constitutes a complement                  and evaluated. It is undeniable that the mission of firefighters and
to the calculation of the economic benefits related to the fire             the variety of means to achieve it will evolve over the years, and
services’ activities. This additional calculation is the result of          the economic benefits of their interventions will remain significant
research and discussions with subject matter experts. This                  for the community being served.
section highlights other possible methodologies that can be used
to calculate the added value of the fire services’ prevention and
response activities.

                                 6 | Comprehensive Study on the Economic and Social Benefits of Fire Prevention
Comprehensive Study on the Economic and Social Benefits of Fire Prevention
Comprehensive Study on the Economic and Social Benefits of Fire Prevention
OBJECTIVE
OF THE STUDY
2. Objective of the Study
The fundamental question which we want to address in this study is the
following: what are the economic and economic and social consequences
or benefits of fire prevention investments?

These consequences appear through various initiatives tailored to                            2.1	Differences between Economic
the context of each fire service, and which enable individuals to                                and Social Benefits
evacuate a burning residential building. These initiatives reduce
the number of deaths while influencing human safety behaviour.                               This study focuses on a number of economic variables,
We want to demonstrate that investment in pre-disaster                                       selected for their relevance to the issue being studied and to
prevention generate a net positive benefit which reduces the                                 the municipalities in the sample. In the two cases studied, these
number of fires and deaths, despite an increase in built heritage                            variables include:
and the population of the cities studied.
                                                                                             •      Value of the built heritage for a given territory
To reach this objective, we decided to split the current study
                                                                                             •      Total value of building permits issued for a given territory
into two parts, using the Laval Fire Services and the MRC de
La Matapédia Fire Services as case studies; the latter constitutes                           •      Residential building fires
a more representative sample of all fire services in the province
                                                                                             Regarding the economic and social variables, these are
of Quebec in terms of its size, constitution, resources and risk
                                                                                             defined as possible indicators of a population’s well-being. These
diversity.
                                                                                             variables relate to both the social and economic areas, as well
The first part of the study seeks to measure the economic value                              as the relationships that binds them. This study combines the
of fire prevention, for a municipality, in the reduction in disasters                        social elements deemed relevant for the study, in addition to an
in residential buildings only2.                                                              economic dimension. These variables include:

The second part focuses on the evaluation of the economic and                                •      Evacuees
social consequences of investments in fire prevention able to                                •      Injured individuals
reduce the impact on the economic and social variables identified
as being relevant, in the case of a residential building fire.                               •      Deceased individuals
                                                                                             •      Life expectancy
The exploratory section is intended to be a summary of the
other measurements and methodologies discovered in the course                                •      Average income
of our research, and which make it possible to determine the                                 •      Air quality
economic and social benefits of fire prevention activities. This
                                                                                             •      Unemployment
section presents only the outcome of research already completed,
but it does not, however, apply the methodologies to the two case                            •      Active population
studies in question.                                                                         •      Employment

2	When granting the initial mandate, two options were considered for the first part; the first part was to measure the economic value of fire prevention for a
   municipality in the overall reduction of disasters. The second part was to measure the economic value of reducing the rate of work accidents and firefighters’
   fatalities, by fire prevention in the reduction of disasters. Although work accidents and firefighters’ casualties represent a significant cost to fire services, the local
   databases specific to the two fire services in our sample were found to be insufficient. This deficiency forced us to set aside this part of this study, although it
   seemed promising, in terms of economic results, for a fire service.

                                           Comprehensive Study on the Economic and Social Benefits of Fire Prevention | 9
SCOPE AND
LIMITS OF
THE STUDY
3. Scope and Limits of the Study
Scope                                                                               Limits
The first part of the study focuses on demonstrating that                           Similar to any other rigorous study, and in order to ensure that we
investing in prevention initiatives are bearing fruit, despite the                  conduct a large-scale groundbreaking study without reference to
increase in the number of residential buildings over time, for                      such an exercise in the world, it is essential to rely on robust and
a given territory. If no prevention initiative were implemented,                    reliable data. The data-gathering process, which lacks consistent
it would be logical to assume that the fire rate (total number                      standardization across fire services in general, made data mining
of fires in relation to the total number of residential buildings),                 and cleaning difficult. For lack of consistency or robustness,
would increase proportionately to the increased number of                           some aspects of this research had to be put aside.
buildings, over time. This premise does not take into account
the obsolescence of the built heritage which gradually increases                    For some of the cities studied in Quebec, fire prevention
the risks, the introduction of all types of new technological risks                 investments are largely linked to the adoption of fire safety
in buildings, or the economic context which can, among other                        cover plans3. For budgetary or other issues, fire services make
things, increase fires of criminal origin.                                          investments in fire prevention in a sporadic and non-linear
                                                                                    manner over time. We therefore sometimes need to rely on
So why is the number of fires continuously decreasing, since the                    averages over time.
cities studied see the number of residential buildings increase
over the years? The declining rate in the number of fires in                        Discretionary prevention initiatives implemented by each
proportion to the variable increase in the number of residential                    city’s fire service vary and are tailored to suit local needs. The
buildings varies according to several factors, including the                        effectiveness of these initiatives is a caveat that this study did not
economic context of each city studied. The type of building and                     take into account. The disparity between these initiatives forces
the materials used are also factors that could cause the data                       us to stick to purely budgetary data, proportionately to the fire
to vary.                                                                            service’s total budget.

For example, the construction of 20 single-family homes in a                        Regulations governing building construction (active/passive
neighbourhood takes longer to complete and results in lower                         prevention) and their application may be of variable geometry
housing density as opposed to a condominium building with                           among the cities studied, depending on whether there is little or
250 apartments. This example shows the undeniable scope                             no standardization or clear political orientation. These differences
of the protective measures offered by fire prevention through                       are in addition to factors influencing the variance of the results on
regulations, and which helps make buildings safer with active and                   the economic impact, depending on the region studied.
passive measure to protect the public.
                                                                                    We also noted some disparities in counting the number of
In the second part, with improved protection for residential                        evacuees of a residential building fire, in both the intervention
buildings (active and passive prevention) and the efficiency                        report by the fire officers and the voluntary organizations that
of prevention activities by the local fire service (discretionary                   provide relief to the victims.
prevention), we focus our attention on reducing fatalities, injuries
                                                                                    Statistically speaking, the size of the sample somewhat limits
and evacuating citizens and firefighters in the case of a fire. This
                                                                                    the ability to draw conclusions indicating very strong long-term
is when prevention has an economic impact on economic and
                                                                                    trends. Our data sampling dates back to the adoption of the
social variables as lives are saved, injuries are less serious
                                                                                    first fire safety cover plans in the early 2000s for the two fire
or avoided.
                                                                                    services studied. With a database going back further in time,
                                                                                    we could have carried out a more in-depth analysis which would
                                                                                    certainly have made it possible to identify more robust causal
                                                                                    links with the adoption of regulations or the implementation of
                                                                                    a discretionary prevention program.

3   https://www.securitepublique.gouv.qc.ca/securite-incendie/ssi/schema-risques.html

                                     Comprehensive Study on the Economic and Social Benefits of Fire Prevention | 11
INTRODUCTION
OF THE
TWO SAMPLE
FIRE SERVICES
4. Introduction of the Two Sample
    Fire Services
In this study, these are the two sample fire services:

Laval Fire Services and MRC de La Matapédia Fire Services.

The historical, territorial and demographic characteristics of these two municipalities, as well as the profile of the two fire prevention
services are described in Appendix II.

                                  Comprehensive Study on the Economic and Social Benefits of Fire Prevention | 13
LITERATURE
OVERVIEW
5. Literature Overview
To help us define our methodology and be consistent with the
best possible references in the field, we sought comparative and
complementary studies of the same nature. We opted to consider as a
reference studies focusing on different aspects of prevention, whatever
the field concerned.

Appendix III contains a literature review of the studies and reports which helped us build the methodology of the current study. A wide
range of research fields were considered to ensure that we address all perspectives that are coherent with and relevant to the objective of
this study. Some reports provided good cost-benefit analyses of investments in prevention and intervention measures.

This literature overview revealed that several studies were conducted on the economic benefits of fire prevention initiatives
before ours, but using national data, for lack of more local data such as is being used in this study. The analysis of a specific
fire prevention organization, for a single territory, is to our knowledge, a first with regard to the subject studied.

In addition, several documents and research studies focused mainly on the economic benefits of the intervention of firefighters or rather on
research to identify major trends over time on material losses and on the cost-benefit analysis of fire prevention.

This literature overview reveals a strong willingness to examine the issues related to the economic repercussions, in all forms, of a fire
service’s activities (material losses, preservation of lives, loss of natural resources, deaths, injuries, preservation of businesses, etc.).
Also of interest is the fundamental role that standardization can have in compiling the real impact of intervention and prevention, thus
highlighting the vital role of the fire services.

The search for a tool to achieve this seems to be a common goal for all the researchers consulted. The studies compiled here are just
steps in that direction.

                                  Comprehensive Study on the Economic and Social Benefits of Fire Prevention | 15
PART 1:
 MEASUREMENT OF THE
 ECONOMIC BENEFITS
 OF FIRE PREVENTION IN
 DISASTER REDUCTION
6. Part 1:
    Measurement of the Economic
    Benefits of fire Prevention in
    Disaster Reduction
The starting point of this analysis, which aims to demonstrate the
economic benefits of fire prevention, is based on the orientations of the
Quebec Ministry of Public Security relating to fire safety, published in
May 2001 and still currently in force in Quebec4.

The Minister suggests a fire risk management model, with the main emphasis on “risk analysis so as to identify preventive measures
designed to reduce the likelihood of a fire occurring (reduction of the occurrence).

The first objective suggested by the Ministry to reduce the damage attributable to the fire is the following: “Considering the proven
effectiveness of the preventive measures in the fight against fires, place the responsibility of protecting the citizens and the heritage
against the fire using, on a priority basis, approaches and preventive measures.”

Note that three national studies5 provided the methodological starting point. They made it possible to better define the macroeconomic
variables to be considered, making them adaptable to a more local context, namely for a single territory to be protected.

There are many different consequences resulting from fires and a multitude of methods can be used to categorize the investment
components and costs in fire prevention.

Investments and costs can be broken down into three categories:

1	Anticipated investments: are mainly investments incurred for the protection and for preventive measures implemented by or for the
   benefit of potential victims;
     These investments are generally broken down into seven components:

     •     Building fire safety;
     •     Fire safety measures at the level of structures and infrastructure;
     •     Education and training in fire safety;
     •     Administration of the insurance policies;
     •     Fire safety of consumer goods;
     •     Research in the field of fires;
     •     Equipment maintenance and safety measures in the field of fires.

4   https://www.securitepublique.gouv.qc.ca/securite-incendie/publications-et-statistiques/orientations-securite-incendie.html
5   “Total Cost of Fire” studies of Canada, the United States and Australia, referenced in APPENDIX III.

                                      Comprehensive Study on the Economic and Social Benefits of Fire Prevention | 17
2.	Costs in terms of consequences: these are the costs                        6.2 Data for the Laval Fire Services
    incurred as a result of a fire and of property, individuals and
    private companies being exposed to fire.                                   Here is the description of the variables following the Laval Fire
                                                                               Services data mining:
     Here are the six components that make up these costs:
     •    Cost of injuries caused by fire;                                     The first variable considered for the final calculation of the
                                                                               study combines data related to investments in discretionary,
     •    Loss of built heritage;
                                                                               active and passive fire prevention:
     •    Losses in turnover;
     •    Costs of environmental damage;                                       Discretionary prevention

     •    Costs in terms of cultural heritage;                                 Between 2006 and 2019, data on the evolution of Laval Fire
     •    Peripheral economic costs.                                           Services’ fire prevention investments were gathered for Laval Fire
                                                                               Services’ investments in discretionary fire prevention activities.
3.	Intervention costs: these are costs associated with                        We added the investments associated with each initiative in
    extinguishing a fire and subsequent clean-up.                              person time and material (residential visits by firefighters,
                                                                               awareness sessions in daycares, newcomers to the territory,
     •    Fire service response costs;
                                                                               play for grade 5 students, fire station open house, national fire
     •    Costs relating to volunteer firefighters;                            prevention week, City of Laval firefighters’ celebration event,
     •    Costs of private fire services.                                      research program on the causes and circumstances of fires).

These investments and costs represent an exhaustive inventory
                                                                               Active and passive prevention
of monetary data related to prevention and fires. In our opinion,
fire services do not have reliable and sufficiently old data for all           1.   Investments in safety measures for a building: since
of these components, which would ensure a greater reliability in                    these investments are difficult to calculate on an individual
such an approach, at least in Quebec or in Canada.                                  basis for each construction, we consulted organizations
                                                                                    knowledgeable in these investments, namely the Régie du
In the light of this observation, we concluded that with the data
                                                                                    bâtiment du Quebec (Quebec agency responsible for the
currently available, an adapted methodology could provide
                                                                                    Building Act) and the National Research Council of Canada.
us with fairly solid results. This would allow us to develop a
methodology capable of providing results which fairly accurately                    Based on our research results, the methodology we chose
demonstrate the economic benefits of fire prevention activities.                    was to assign an average value to the investment in fire
                                                                                    prevention of 2.5% of the total building cost. This value,
The following section presents the data used in our study.                          multiplied by the total value of building permits per year,
                                                                                    enabled us to calculate the annual value of investments
                                                                                    in security measures for buildings. (approximately 0.5%
6.1 Methodology
                                                                                    in buildings residential up to 4% of high-risk industrial
Four variables were used in this analysis. They are used to                         buildings). This value, multiplied by the total value of building
measure the total investment in fire prevention, that is, what a                    permits per year, enabled us to calculate the value of
fire service has invested over time for all fire prevention activities              investments in security measures for buildings. However,
in order to reduce the loss of human and material life.                             this data, combined with discretionary investments in
                                                                                    prevention, does not significantly contribute to creating a
It was difficult to convert the methodology used with national                      robust causal link with the drop in the number of fires.
data from the reference studies, in order to develop a more
local calculation approach for a single fire service, in a specific
jurisdiction. What we call “fire prevention investments” are
sometimes defined as the costs of fire prevention initiatives of the
two sample fire services. The detailed description of the variables
is presented in Appendix IV.

                                    18 | Comprehensive Study on the Economic and Social Benefits of Fire Prevention
2.   Investments in the security of structures and                           The second variable is the number of residential building
     infrastructure: two factors prevented us from obtaining                 fires for the territory served. We were able to rely on a 13-year
     convincing data ensuring a reliable calculation of these                sampling, from 2006 to 2019.
     investments. First, following the same references as in
     number 1, we were not able to draw a clear-cut conclusion               The third variable is the value of the built heritage or the real
     on the percentage to be used for this calculation. Second,              estate value of all the buildings in the territory served. We
     the very unequal value of infrastructure projects, according            were able to date back to 1999, and therefore rely on a 20-
     to our definition of this category, makes the calculation               year sampling.
     exercise risky.
                                                                             The fourth variable is the total annual value of building
     For example, projects to replace underground water network              permits. We were able to date back to 2000, and therefore rely
     pipes and building a viaduct fall under the same category of            on a 19-year sample.
     infrastructure as a tunnel, but do not require the same safety
     measures, which is why no conclusion on these investments               6.3 Results for Laval Fire Services
     could not be drawn.
                                                                             Laval Fire Services’ investments in fire prevention have increased
3.   Administration of residential building fire insurance claims:           significantly over the years, due in particular by the increase in
     no robust data could be found.                                          resources related to fire prevention (implementation of activities
                                                                             for citizens, inspections, personnel recruitment, etc.).
4.   Fire safety features in everyday consumer goods: no robust
     data could be found.                                                    From $6,573 in 2002, investments in prevention rose to
5.   All research undertaken in fire safety by the public and                $383,607 in 2019, an average annual growth of 27.0%.
     private sectors: no robust data could be found.
6.   Fire safety equipment maintenance: no robust data could
     be found.

                                  Comprehensive Study on the Economic and Social Benefits of Fire Prevention | 19
6.3.1 Statistical Report for Laval Fire Services

An inversion of Laval’s historical fire curve occurred as of 2015.

1.     There is a positive relationship between prevention investments and the preservation of built heritage, while observing a decrease
       in the number of fires.
2.     The Laval Fire Services increased its investments in fire prevention by 12% per year from 2006 and 2019; this allowed for the
       preservation of the built heritage, which experienced an annual increase of 6.5% during these same years.
3.     There was an average annual 2.4% decrease in the number of fires from 2006 to 2019, representing a cumulative decrease of
       26.7% over 12 years6.

                  The evolution of investments in fire prevention VS the number of fires between 2006 and 2019

     400                                                                                                                          450,000
     350                                                                                                                          400,000
     300                                                                                                                          350,000
                                                                                                                                  300,000
     250
                                                                                                                                  250,000
     200
                                                                                                                                  200,000
     150
                                                                                                                                  150,000
     100                                                                                                                          100,000
     50                                                                                                                           50,000
       0                                                                                                                          0
               20

                       20

                                20

                                        20

                                                 20

                                                         20

                                                                     20

                                                                           20

                                                                                    20

                                                                                          20

                                                                                                  20

                                                                                                          20

                                                                                                                  20

                                                                                                                             20
                 06

                         07

                                  08

                                           09

                                                   10

                                                            11

                                                                     12

                                                                               13

                                                                                     14

                                                                                            15

                                                                                                    16

                                                                                                            17

                                                                                                                    18

                                                                                                                             19
                                  Fires (left scale)
                                  Investments (right scale)

            The evolution of the property assessments VS the number of fires between 2006 and 2019

    400                                                                                                                  40,000,000,000

    350                                                                                                                  35,000,000,000

    300                                                                                                                  30,000,000,000

    250                                                                                                                  25,000,000,000

    200                                                                                                                  20,000,000,000

6   150
     The percentage was calculated using the compound annual rate.                                                       15,000,000,000

    100                                                                                                                  10,000,000,000
                                      20 | Comprehensive Study on the Economic and Social Benefits of Fire Prevention
     50                                                                                                                  5,000,000,000

       0                                                                                                                 0
               20

                       20

                               20

                                      20

                                              20

                                                      20

                                                              20

                                                                      20

                                                                               20

                                                                                     20

                                                                                           20

                                                                                                  20

                                                                                                          20

                                                                                                                 20
                 06

                         07

                                 08

                                        09

                                                10

                                                        11

                                                                12

                                                                          13

                                                                                14

                                                                                     15

                                                                                             16

                                                                                                    17

                                                                                                            18

                                                                                                                    19
Investments (right scale)

                               20

                                      20

                                             20

                                                      20

                                                              20

                                                                      20

                                                                              20

                                                                                       20

                                                                                              20

                                                                                                       20

                                                                                                                 20

                                                                                                                      20

                                                                                                                               20

                                                                                                                                     20
                                06

                                        07

                                                 08

                                                        09

                                                                10

                                                                        11

                                                                                12

                                                                                        13

                                                                                                14

                                                                                                         15

                                                                                                                 16

                                                                                                                          17

                                                                                                                                18

                                                                                                                                       19
                                                  Fires (left scale)                          Property assessments (right scale)

                  The evolution of the property assessments VS the number of fires between 2006 and 2019

         400                                                                                                                              40,000,000,000
                     The evolution of investments in fire prevention VS property assessments between 2006 and 2019
         350                                                                                                                              35,000,000,000
                 450,000                                                                                                                            40
         300                                                                                                                              30,000,000,000
                 400,000                                                                                                                            35
         250 350,000                                                                                                                      25,000,000,000
                                                                                                                                                  30
                 300,000
         200                                                                                                                                      25
                                                                                                                                          20,000,000,000
                 250,000
                                                                                                                                                    20
         150 200,000                                                                                                                      15,000,000,000
                                                                                                                                                    15
                 150,000
         100                                                                                                                              10,000,000,000
                                                                                                                                                  10
                 100,000
          50 50,000                                                                                                                               5
                                                                                                                                          5,000,000,000
                       0                                                                                                                            0
           0                                                                                                                              0
                                                                                            20 14

                                                                                                     20 15

                                                                                                             20 16

                                                                                                                      20 17

                                                                                                                           20 18

                                                                                                                                    20 019

                                                                                                                                              20
                               20 07

                                       20

                                             20 09

                                                       20 10

                                                                 20 11

                                                                         20 12

                                                                                 20 13
                    20

                             20

                                 26

                                            2

                                                      2

                                                               20

                                                                       20

                                                                                20

                                                                                        20

                                                                                                    20

                                                                                                             2

                                                                                                                      2

                                                                                                                           2

                                                                                                                                      2
                                                                                              13

                                                                                                       14

                                                                                                               15

                                                                                                                        16

                                                                                                                             17

                                                                                                                                      18

                                                                                                                                               19
                                 0

                                         07

                                               08

                                                         19

                                                                   10

                                                                           11

                                                                                   12
                                      00

                                                0

                                                          0

                                                                                                                0

                                                                                                                         0

                                                                                                                              0
                      06

                                       8

                                       Prevention investments in $ (left scale)
                                       Fires (left scale)                Property assessments (right scale)
                                       Property assessments in $ Billions (right scale)

                           The evolution of the number of fires VS the value of building permits between 2006 and 2019

          400                                                                                                                                            900
          The evolution of investments in fire prevention VS property assessments between 2006 and 2019
          350                                                                                                                                            800
      450,000                                                                                                                                       40
           300                                                                                                                                           700
      400,000                                                                                                                                       35
                                                                                                                                                         600
      350,000
           250                                                                                                                                      30
      300,000                                                                                                                                            500
          200                                                                                                                                       25
      250,000                                                                                                                                            400
          150                                                                                                                                       20
      200,000                                                                                                                                            300
                                                                                                                                                    15
      150,000
           100                                                                                                                                           200
      100,000                                                                                                                                       10
           50                                                                                                                                            100
       50,000                                                                                                                                       5
            0                                                                                                                                            0
            0                                                                                                                                       0
                    20

                             20

                                      202

                                                 202

                                                            2020

                                                                     2020

                                                                              20201

                                                                                       20201

                                                                                                    20 014

                                                                                                             20 015

                                                                                                                      20 16

                                                                                                                               20 17

                                                                                                                                       20 8

                                                                                                                                               20 9
                                                                                                                      2

                                                                                                                           2

                                                                                                                                     20

                                                                                                                                              20
                      20

                               20

                                                                                                2

                                                                                                             2
                                        0080

                                                   0091

                                                              1010

                                                                       1111

                                                                                12 2

                                                                                         13 3

                                                                                                      14

                                                                                                               15

                                                                                                                        16

                                                                                                                                 17

                                                                                                                                         18

                                                                                                                                                 19
                                                                                                                         0

                                                                                                                                  0
                       060

                                070

                                                                                                                                           1

                                                                                                                                                   1
                           6

                                  7

                                             8

                                                        9

                                    Fires (left scale)
                               Prevention investments
                                  Construction         in $ in
                                               permit value (left scale) (righ scale)
                                                               $ Millions
                               Property assessments in $ Billions (right scale)

                                          Comprehensive
                  The evolution of the number           Study
                                              of fires VS  theonvalue
                                                                 the Economic and Social
                                                                       of building       Benefits
                                                                                   permits        of Fire Prevention
                                                                                             between      2006 and| 21
                                                                                                                     2019

400                                                                                                                                                      900

350                                                                                                                                                      800
Decrease in number of fires, despite the increase in built heritage and prevention investments.
(the data presented on the 2 axes have been transformed into logarithms, to allow the visualization of the three curves on the
same graphs)

           Changes in the number of fires, investment in fire prevention and the value of building permits between 2006 and 2019

2.60                                                                                                                                    9.00

2.55                                                                                                                                    8.50

                                                                                                                                        8.00
2.50
                                                                                                                                        7.50
2.45
                                                                                                                                        7.00
2.40
                                                                                                                                        6.50
2.35
                                                                                                                                        6.00
2.30
                                                                                                                                        5.50

2.25                                                                                                                                    5.00

2.20                                                                                                                                    4.50

                                                                                                                              20
          20

                   20

                            20

                                     20

                                              20

                                                      20

                                                               20

                                                                        20

                                                                                 20

                                                                                          20

                                                                                                   20

                                                                                                            20

                                                                                                                     20
                                                                                                                       18

                                                                                                                                   19
            06

                    07

                             08

                                      09

                                               10

                                                        11

                                                                 12

                                                                          13

                                                                                   14

                                                                                            15

                                                                                                     16

                                                                                                              17
                                          Fires (left scale)
                                          Prevention investments (right scale)
                                          Value of building permits (right scale)

                                  22 | Comprehensive Study on the Economic and Social Benefits of Fire Prevention
300                                                                                                                30,000,000,000

          250                                                                                                                25,000,000,000

          200                                                                                                                20,000,000,000

          150                                                                                                                15,000,000,000
6.3.2 Economic Benefits for Laval Fire Services
          100                                                                                                                10,000,000,000
Our statistical analysis shows that investments in fire prevention have a significant economic benefit on a number of variables.
           50                                                                                                                5,000,000,000
For the period from 2006 to 2019, Laval’s annual prevention investments averaged $227,719. For the same period, the preservation
             0
of built heritage, net of losses due to fires, stands at $ 25 billion on average.                              0
                    20

                           20

                                  20

                                          20

                                                 20

                                                         20

                                                                20

                                                                        20

                                                                                20

                                                                                       20

                                                                                               20

                                                                                                      20

                                                                                                              20

                                                                                                                        20
                      06

                             07

                                    08

                                            09

                                                   10

                                                           11

                                                                   12

                                                                          13

                                                                                  14

                                                                                         15

                                                                                                 16

                                                                                                         17

                                                                                                                   18

                                                                                                                        19
  Our statistical results show that on average, over the period from 2006 to 2019, a 1% increase in prevention
                                  Firescontributed
  investments (approximately $2,270)     (left scale)to an increase in Property  assessments
                                                                       net property value of 0.5%,(right scale) an increase
                                                                                                   representing
  of $130 million.

Of course, there are other factors that explain the performance of the property assessment. The current exercise does not intend to identify
all the factors that explain the increase in Laval’s property assessments, but it is undeniable that investments in fire prevention have
statistically contributed to the increase observed between 2006 and 2019.

           The evolution of investments in fire prevention VS property assessments between 2006 and 2019

       450,000                                                                                                                       40
       400,000                                                                                                                       35
       350,000                                                                                                                       30
       300,000
                                                                                                                                     25
       250,000
                                                                                                                                     20
       200,000
                                                                                                                                     15
       150,000
       100,000                                                                                                                       10
        50,000                                                                                                                       5
             0                                                                                                                       0
                                                                      20

                                                                              20

                                                                                      20

                                                                                              20

                                                                                                       20

                                                                                                               20

                                                                                                                        20

                                                                                                                              20
                     20

                             20

                                     20

                                             20

                                                     20

                                                             20

                                                                        12

                                                                                13

                                                                                        14

                                                                                                15

                                                                                                         16

                                                                                                                   17

                                                                                                                         18

                                                                                                                                19
                       06

                               07

                                       08

                                               19

                                                       10

                                                                11

                             Prevention investments in $ (left scale)
                             Property assessments in $ Billions (right scale)

                 The evolution of the number of fires VS the value of building permits between 2006 and 2019

400                                                                                                                                       900

350                                                                                                                                       800

300                                                                                                                                       700
                                                                                                                                          600
250
                                                                                                                                          500
200
                                                                                                                                          400
150
                                 Comprehensive Study on the Economic and Social Benefits of Fire Prevention | 23                          300
100                                                                                                                                       200
  50                                                                                                                                      100
6.4 MRC de La Matapédia Data                                                  The second variable is the number of residential building
                                                                              fires for the territory served. We were able to rely on a 13-year
Here is the description of the variables following the data mining            sampling, from 2006 to 2019.
of the MRC de La Matapédia Fire Services:
                                                                              The third variable is the value of the built heritage or the
The first variable considered for the final calculation of the                property value of all the buildings for the territory served.
study combines data related to investments in discretionary,                  We were able to date back to 1999, and therefore rely on a
active and passive fire prevention:                                           20-year sampling.

Discretionary Prevention                                                      The fourth variable is the total annual value of building
                                                                              permits. We were able to date back to 2006, and therefore rely
From 2006 to 2019, data on the progress of fire prevention                    on a 13-year sample.
investments at the MRC de La Matapédia were collected for
investments in discretionary fire prevention activities. We
added the investments associated with each initiative in person
                                                                              6.5 MRC de La Matapédia results
time and material (residential visits by firefighters, daycare                Our statistical analysis shows that investments in fire prevention
awareness program, information sessions in primary schools                    have a significant economic impact on a number of variables.
and residences for seniors, training on the use of portable
fire extinguishers, open houses at fire stations and public                   The MRC de La Matapédia Fire Services’ prevention investments
education).                                                                   totalled $27,242 in 2006, and increased to $47,962 in 2019,
                                                                              representing an average annual increase of 4.8%.
Active and passive prevention

1.   Similar to the Laval Fire Services, we chose as a
     methodology to assign an average value to the fire
     prevention investments of 2.5% of the total cost
     of constructing a building. This value, multiplied by
     the total value of building permits for a year, enabled us
     to calculate the annual value of investments in security
     measures for buildings.
2.   Investments in safety for structures and infrastructure:
     two factors prevented us from obtaining convincing data
     ensuring a reliable calculation of these investments. First,
     following the same references as in number 1, we were
     not able to draw a clear-cut conclusion on the percentage
     to be used for this calculation. Secondly, the very unequal
     value of infrastructure projects, according to our definition
     of this category, makes the calculation exercise risky.
3.   Administration of residential building fire insurance claims:
     no robust data could be found.
4.   Fire safety features in everyday consumer goods: no robust
     data could be found.
5.   Total research undertaken in fire safety by the public and
     private sectors: no robust data could be found.
6.   Fire safety equipment maintenance: no robust data could
     be found.

                                  24 | Comprehensive Study on the Economic and Social Benefits of Fire Prevention
6.5.1 Statistical Review of the MRC Matapédia

An inversion of the historical fire curve for the MRC Matapéria occurred as of 2011.

1.       As indicated in the following charts, there is a positive relationship between prevention investments and the preservation of built
         heritage, while observing a decrease in the number of fires.
2.       The increase in fire prevention investments by the MRC de La Matapédia Fire Services was 4.8% per year from 2006 to 2019; this
         allowed the preservation of the built heritage, which experienced an annual increase of 5.5% during this period.
3.       The number of fires decreased annually from 2006 to 2019, going from 56 to 43, an average annual decrease of -2.2%
                      The evolution of investments in fire prevention VS the number of fires between 2006 and 2019
         in 13 years7.
    60                                                                                                                                60,000
                       The evolution of investments in fire prevention VS the number of fires between 2006 and 2019
    50
    60                                                                                                                                50,000
                                                                                                                                      60,000
    40                                                                                                                                40,000
    50                                                                                                                                50,000
    30
    40                                                                                                                                30,000
                                                                                                                                      40,000
    20
    30                                                                                                                                20,000
                                                                                                                                      30,000
    10
    20                                                                                                                                10,000
                                                                                                                                      20,000
     0                                                                                                                                0
    10                                                                                                                                10,000
             20

                      20

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               06

                        07

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     0                                                                                                                                0
                           Fires (left scale)                     Prevention investments in $ (right scale)
             20

                      20

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                           Fires (left scale)                     Prevention investments in $ (right scale)

                      The evolution of the property assessments VS the number of fires between 2006 and 2019
    60                                                                                                                                    1,600
                      The evolution of the property assessments VS the number of fires between 2006 and 2019                              1,400
    50
    60                                                                                                                                    1,600
                                                                                                                                          1,200
    40                                                                                                                                    1,400
    50                                                                                                                                    1,000
    30                                                                                                                                    1,200
                                                                                                                                          800
    40
                                                                                                                                          1,000
                                                                                                                                          600
    20
    30                                                                                                                                    800
                                                                                                                                          400
    10                                                                                                                                    600
    20                                                                                                                                    200
     0                                                                                                                                    400
                                                                                                                                          0
    10
                                                                                                                                          200
              20

                       20

                               20

                                         20

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                06

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                                                                     12

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                                                                                       14

                                                                                                15

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     0                                                                                                                                    0
                                           Fires (left scale)
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                                           Property assessments in millions $ (right scale)
7
                                           Fires (left scale)
     The percentage was calculated using the compound annual rate.
                                           Property assessments in millions $ (right scale)
                                       Comprehensive Study on the Economic and Social Benefits of Fire Prevention | 25

                    The evolution of the number of fires VS the value of building permits between 2006 and 2019
60                                                                                                                                            18
                    The evolution of the number of fires VS the value of building permits between 2006 and 2019
Fires (left scale)
                                                                Property assessments in millions $ (right scale)

                                                                            The evolution of the number of fires VS the value of building permits between 2006 and
                                                      60
                                      The evolution50
                                                    of the number of fires VS the value of building permits between 2006 and 2019
                   60                                                                                                                                              18
                                                      40                                                                                                           16
                   50
                                                      30                                                                                                           14
                   40                                                                                                                                              12
                                                      20                                                                                                           10
                   30
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                   10
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                     0                                                                                                                                             0
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                                                                                               08 201

                                                                                                          09 2013

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                                                                                      Fires (left scale)
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                                06

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                                                                           0

                                                                                                      2
                                              Fires (left scale)                      Building permits value in millions de $ (right scale)
                                              Building permits value in millions de $ (right scale)

                 Decrease in number of fires, despite the increase in built heritage and prevention investments.
                 (the data presented on the 2 axes have been transformed into logarithms, to allow the visualization of the three curves on the same
                 graphs)

                              Changes in the number of fires, investment in fire prevention and the value of building permits between 2006 and 2019
hanges in the number of fires, investment in fire prevention and the value of building permits between 2006 and 2019
                    1.80                                                                                                                                         7.50
                                                                                                                             7.50
                    1.70                                                                                                     7.00                                7.00
                    1.60                                                                                                     6.50                                6.50
                                                                                                                             6.00                                6.00
                    1.50
                                                                                                                             5.50                                5.50
                    1.40
                                                                                                                             5.00                                5.00
                    1.30                                                                                                     4.50                                4.50
                    1.20                                                                                                     4.00                                4.00
                    1.10                                                                                                     3.50
                                                                                                                                                                 3.50
                                                                                                                             3.00
                    1.00                                                                                                                                         3.00
20

         20

                  20

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                                           20 20

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  06

           07

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                                             11 07

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                                                                 1300

                                                                          1240

                                                                                    125

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                                                           8

                                                                  9

                                                                            0

                         Fires (left scale)
                         Building permits value (rightFires (left scale)
                                                        scale)
                                                     Building
                         Prevention investments (right   scale) permits value (right scale)
                                                               Prevention investments (right scale)

                                                                                             The evolution of investments in fire prevention VS property assessments between 2006 and 201
                                                                               60,000                                               The evolution of investments in fire prevention VS prop
                                                        26 | Comprehensive Study on the Economic and Social Benefits
                                                                       50,000                                60,000of Fire Prevention

                                                                               40,000                                     50,000
                                                                               30,000
7.00
                                                           6.50
                                                           6.00
                                                           5.50
                                                           5.00
                                                           4.50
              6.5.2 Economic Benefits for the MRC de La Matapédia
                                                           4.00
              Once again, our statistical analysis shows that investments in fire prevention have a significant economic impact on a number of variables.
                                                           3.50
              For the period from 2006 to 2019, the MRC 3.00
                                                           de La Matapédia’s Fire Services’ prevention investments averaged $37 0008. For the same
              period, the preservation of built heritage, net of losses due to fires, stands at $ 37 million on average.
  20

         20

                  20

                             20

                                     20

                                              20

                                                        20
    13

           14

                    15

                               16

                                       17

                                                18

                                                          19
                Our statistical results show that on average over the period from 2006 to 2019, a 1% increase in prevention
                investments led to an increase in net property value of 0.3%, an increase of $37M.
ght scale)
ight scale)
              Similar to Laval’s Fire Services, other factors influence the performance of property assessments. As we pointed out earlier, the current
              exercise is not intended to statistically explain the cause of the property assessment variation, but instead wants to validate whether the
              investments in fire prevention have statistically contributed to the increase observed between 2006 and 2019.

                             The evolution of investments in fire prevention VS property assessments between 2006 and 2019
                60,000                                                                                                                                          1,600
                                                                                                                                                                1,400
                50,000
                                                                                                                                                                1,200
                40,000
                                                                                                                                                                1,000
                30,000                                                                                                                                          800
                                                                                                                                                                600
                20,000
                                                                                                                                                                400
                10,000
                                                                                                                                                                200
                         0                                                                                                                                      0
                                20

                                          20

                                                    20

                                                              20

                                                                       20

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                                                                                           20

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                                  06

                                            08

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                                                                                                                                             18

                                                                                                                                                       19
                                                    Prevention investments in $ (left scale)
                                                    Property assessments in millions $ (right scale)

              8	We deliberately excluded the observation for 2006 with regard to prevention investments, which was characterized by extremely low data compared to the entire
                 sample.

                                                    Comprehensive Study on the Economic and Social Benefits of Fire Prevention | 27
PART 2:
MEASUREMENT OF
THE ECONOMIC AND
SOCIAL IMPACT OF
FIRE PREVENTION
INVESTMENTS
7. Part 2: Measurement of
    the Economic and social Impact of
    Fire Prevention Investments
In the literature review of this study, several documents address the
economic and social aspects of the subjects being addressed. In this study,
we wanted to address this aspect by considering that beyond the scope
of prevention investments relating to the construction and operation of
residential buildings, there are benefits in terms of reducing the number
deaths and injuries and increasing the number of evacuees.

To develop our methodology, two questions guided us when we                   7.1 Methodology
started our reflection, to properly target the avenues to be taken
and to identify the relevant economic and social variants for this            The methodology of Part 2 is a little more complex than
exercise:                                                                     the one applied in Part 1. We have identified three stages
                                                                              through which we obtain results enabling the establishment
1.   Is there a link between prevention investments (costs) and               of convincing statistical relationships between fire prevention
     the economic and social environment?                                     investments and the economic impact on the community.
2.   What is the link between prevention investments (costs) and              Appendix V presents the complete methodology developed to
     certain relevant economic and social variables that would                calculate the social and social impact of fire prevention, and
     allow fire prevention to have a global economic influence?               in particular to properly identify the evacuees in the case of a
                                                                              residential building fire.
Two types of factors contribute to determining the economic and
social benefits of a situation or a subject which we have taken               Where data was available, we were able to separate the types
into account in this study:                                                   of evacuees into two categories (types 1 and 2), depending
                                                                              on whether they were evacuated from their home in less
Endogenous factors: these are factors over which we have no
                                                                              than 24 h (type 1) or in more than 24 h (type 2). The reasons
control, but which vary depending on the exogenous factors. In
                                                                              and the process that explain this distinction are contained in
a residential building fire addressed in this study, the following
                                                                              Appendix VI.
factors are considered to be exogenous: individuals evacuated,
injured, dead, number of calls, regional employment and                       It is important to mention that data permitting, in order to set
median salary.                                                                a monetary value for injured individuals (value of the economic
                                                                              benefit in dollars) a reliable and recognized value for individuals
Exogenous factors: these are predetermined factors over
                                                                              slightly injured or seriously injured must be determined. Based
which the fire service exercises control, such as investments in
                                                                              on our research, only one reference shed light on this type
active and passive prevention (standards and regulations) and
                                                                              of assessment.
discretionary prevention. Considering these two types of factors
through the eyes of someone working inside a fire service is
quite different than from the point of view of an elected official or
a taxpayer.

                                   Comprehensive Study on the Economic and Social Benefits of Fire Prevention | 29
The Quinet Report9, published in France in 2013 and referenced by Ms. Cécile Canouet in her study “Valorisation économique de l’activité
opérationnelle des sapeurs-pompiers” (Economic valuation of firefighters’ operational activities) (see the literature review in Appendix III),
establishes the reference values to be used in France:

•       Statistical value of a human life (SVHL): 4,4 M$ CAN (2013)
•       Value of a serious injury: 15% of the SVHL
•       Value of a light injury: 2% of the SVHL
Although we were strongly tempted to use these values to measure the monetary value of the impact of the prevention investments on
evacuees and individuals seriously or lightly injured, since there is a lack of studies on the subject, we did not feel comfortable using them.

According to the methodology used on the basis of our research and the available data, it is reasonable to conclude that with the
contribution of a simulated 1% increase in a fire service’s prevention investments, we could logically obtain the following expected
statistical relationships:

    Social variables                                               Active/passive prevention                                Discretionary prevention
    Evacuees - type 1                                                               +                                                       +
    Evacuees - type 2                                                               +                                                       +
    Injured civilians                                                               +                                                       +
    Deaths                                                                          -                                                       -
    Injured firefighters                                                            -                                                       -

7.2 Data for Laval Fire Services                                                          There is a statistical relationship between investment in active/
                                                                                          passive prevention and the reduction in the number of dead
All data on evacuees used for the Laval Fire Services originate                           citizens and injured firefighters: for each 1% increase in
from an analysis of data from three different sources:                                    prevention investments, the number of dead citizens
                                                                                          decreases by 0.8% and the number of injured firefighters
1.      Firefighters’ intervention reports;                                               decreases by 0.9%.
2.      Data from the Laval Social Emergency, an organization
        which provides relief to disaster victims;                                        Further analysis reveals a cause-and-effect relationship between
                                                                                          discretionary prevention investments, which acts mainly on
3.      Data provided by the Red Cross, which offers disaster                             the behaviour of individuals, and the number of evacuees of
        victims relief in addition to Laval Social Emergency.                             types 1 and 2, for the period from 2006 to 2019. The results
                                                                                          suggest that each 1% increase in discretionary prevention
7.3 Results for the Laval Fire Services                                                   investments generates a 3.3% increase in the number of
                                                                                          type 1 evacuees and a 2.9% increase in type 2 evacuees.
Laval Fire Services’ statistical analysis provides interesting
results for active/passive prevention and discretionary prevention
activities. However, it does not suggest a significant correlation
between discretionary prevention investments, on the one hand,
and the number of injuries among firefighters or the number of
deaths.

9       uinet E. (2013), L’évaluation socio-économique des investissements publics, Commissariat général à la stratégie et à la prospective, France, 354 p.
       Q
       https://www.strategie.gouv.fr/sites/strategie.gouv.fr/files/atoms/files/cgsp_evaluation_socioeconomique_29072014.pdf

                                         30 | Comprehensive Study on the Economic and Social Benefits of Fire Prevention
Our empirical results do not lead us to conclude that there is a robust macroeconomic relationship between prevention investments,
employment and median income in the Laval region.

For the Laval Fire Services, a simulated increase of 1% allowed us to obtain the following statistical relationships:

 Social variables                                                Active/passive prevention                                Discretionary prevention
 Evacuees - type 1                                                     Not significant (=0)                                          +3,3 %
 Evacuees - type 2                                                     Not significant (=0)                                          +2,9 %
 Injured civilians                                                     Not significant (=0)                                          +0,3 %
 Deaths                                                                       -0,8 %                                           Not significant (=0)
 Injured firefighters                                                         -0,9 %                                           Not significant (=0)

In summary, the simulated 1% increase in prevention                                     Further analysis reveals a cause-and-effect relationship between
investments produces the following results:                                             prevention investments and the number of evacuees for the
                                                                                        period from 2006 to 2019. The results suggest that each
•     3.3% increase in the number of type 1 evacuees;                                   1% increase in prevention investments generates a 2%
•     2.9% increase in the number of type 2 evacuees;                                   increase in the number of evacuees.
•     0.3% increase in the number of civilian injuries;                                 Likewise, the employment rate in the region also seems to
•     0.8% decrease in the number of deaths;                                            be strongly correlated with prevention investments for the
                                                                                        same period.
•     0.9% decrease in the number of injured firefighters.
                                                                                        There is a strong and robust macroeconomic relationship
                                                                                        between prevention investments and employment in the MRC
7.4 Results for the MRC de La Matapédia                                                de La Matapédia. Empirical results suggest that each 1%
     Fire Service                                                                       increase in prevention investments generates a 10%
The statistical analysis of the MRC de La Matapédia suggests                            increase in regional employment (approximately 60
interesting results in terms of prevention. Although it does not                        additional jobs).
show a significant correlation between prevention investments,
on the one hand, and the number of injured firefighters or the                          Our statistical analysis also revealed a very strong correlation
number of deaths, on the other hand, there seems to be a                                between prevention investments and the median income for the
favourable positive statistical relationship between the                                MRC de La Matapédia, from 2006 to 2019. A 1% increase
prevention investments and the number of evacuees.                                      in prevention investments generates a 3% increase in
                                                                                        median income for the MRC10.
As the baseline data was not from the same database as for the
Laval Fire Services, we determined that there would be only one
type of evacuee rather than two.

10   According to the Institut de la statistique du Québec (Quebec Statistical Office), the regional median income was $36,500 in 2019.

                                       Comprehensive Study on the Economic and Social Benefits of Fire Prevention | 31
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