Economic Impacts of Fire

Public agencies and organizations often deliver financial assistance through cost sharing, in which recipients contribute some portion toward total costs. However, cost sharing might raise equity concerns if it reduces participation among populations with lower incomes.

The USDA Forest Service received $5.447 billion in funding from the Bipartisan Infrastructure Law of 2021, providing substantial funding to support implementation of the agency’s 2022 Wildfire Crisis Strategy between fiscal years 2022 and 2026.

During August 2021, a wildfire outbreak in Evia, Greece’s second largest island, resulted in a major environmental and economic crisis. Apart from biodiversity and habitat loss, the disaster triggered a financial crisis because it wiped out wood-productive forests and outdoor areas that attract visitors.

This review synthesizes the scientific literature on fuel treatment economics published since 2013 with a focus on its implications for land managers and policy makers. We review the literature on whether fuel treatments are financially viable for land management agencies at the time of implementation, as well as over the lifespan of fuel treatment effectiveness.

T his report describes the full range of costs associated with wildland fire in the Western United States (U.S.) to help inform leaders and policymakers working to improve wildfire response and mitigation.