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The Costs and Losses of Wildfires a Literature Review NIST Special Publication 1215 The Costs and Losses of Wildfires A Literature Review Douglas Thomas David Butry Stanley Gilbert David Webb Juan Fung This publication is available free of charge from: https://doi.org/10.6028/NIST.SP.1215 NIST Special Publication 1215 The Costs and Losses of Wildfires A Literature Survey Douglas Thomas David Butry Stanley Gilbert David Webb Juan Fung Applied Economics Office Engineering Laboratory This publication is available free of charge from: https://doi.org/10.6028/NIST.SP.1215 November 2017 U.S. Department of Commerce Wilbur L. Ross, Jr., Secretary National Institute of Standards and Technology Walter Copan, NIST Director and Under Secretary of Commerce for Standards and Technology Certain commercial entities, equipment, or materials may be identified in this document in order to describe an experimental procedure or concept adequately. Such identification is not intended to imply recommendation or endorsement by the National Institute of Standards and Technology, nor is it intended to imply that the entities, materials, or equipment are necessarily the best available for the purpose. Photo Credit: Lake City, Fla., May 15, 2007 -- The Florida Bugaboo Fire still rages out of control in some locations. FEMA Photo by Mark Wolfe - May 14, 2007 - Location: Lake City, FL: https://www.fema.gov/media-library/assets/images/51316 National Institute of Standards and Technology Special Publication 1215 Natl. Inst. Stand. Technol. Spec. Publ. 1215, 72 pages (October 2017) CODEN: NSPUE2 This publication is available free of charge from: https://doi.org/10.6028/NIST.SP.1215 Abstract This report enumerates all possible costs of wildfire management and wildfire-related losses. It, further, compiles estimates or proposes methods for estimating the costs and losses identified. These estimates can be used for C+NVC (cost plus net value change) modeling, and can also be used to produce an estimate of the ‘economic burden’ of wildfire for the United States. The economic burden represents the impact wildfire has on the U.S. economy. Tracking the economic burden of wildfire could be used to assess return-on-investment into wildfire interventions. The economic burden is decomposed This publication is available free of charge from: of Thisfree charge from: is available publication https://doi.org/10.6028/NIST.SP.1215 into: 1. intervention costs; 2. prevention/preparedness, mitigation, suppression, and cross- cutting; 2. and into direct and indirect wildfire related (net) losses. The annualized economic burden from wildfire is estimated to be between $71.1 billion to $347.8 billion ($2016 US). Annualized costs are estimated to range from $7.6 billion to $62.8 billion. Annualized losses are estimated to range from $63.5 billion to $285.0 billion. i Contents Introduction: The Economics of Wildland/WUI Fire Management........................... 1 1.1. Wildfire Production (Net Damage) Functions ............................................................ 3 1.2. Purpose ........................................................................................................................ 7 1.3. Scope and Approach .................................................................................................... 7 The Costs Associated with Wildfires ........................................................................... 11 This publication is available free of charge from: of Thisfree charge from: is available publication 2.1. Preparedness .............................................................................................................. 11 2.2. Mitigation .................................................................................................................. 11 2.2.1. Fuels Management .............................................................................................. 11 2.2.2. Insurance ............................................................................................................. 13 2.2.3. Disaster Assistance .............................................................................................. 15 2.3. Suppression ............................................................................................................... 16 2.4. Cross-Cutting............................................................................................................. 17 2.4.1. Legal .................................................................................................................... 17 2.4.2. Science, Research, and Development .................................................................. 20 2.4.3. Regulations and Building Codes ......................................................................... 20 The Losses Associated with WUI Fires........................................................................ 23 3.1. Direct Losses ............................................................................................................. 23 https://doi.org 3.1.1. Deaths .................................................................................................................. 23 3.1.2. Injuries and Health Impacts ................................................................................. 25 3.1.3. Psychological Impacts ......................................................................................... 27 /10.6028/NIST.SP.1215 3.1.4. Structure and Infrastructure ................................................................................. 28 3.1.5. Environmental Impact ......................................................................................... 30 3.1.6. Timber and Agriculture Loss .............................................................................. 32 3.1.7. Agriculture Loss .................................................................................................. 33 3.2. Indirect Losses........................................................................................................... 33 3.2.1. General Economic Impacts ................................................................................. 33 3.2.2. Supply Chain Impacts ......................................................................................... 35 3.2.3. Evacuation Costs ................................................................................................. 35 3.2.4. Accelerated Economic Decline of Community ................................................... 38 3.2.5. Utility, Transportation, and Government Service Interruption ........................... 39 3.2.6. Psychological Impacts from Lost Amenities ....................................................... 39 3.2.7. Housing Market Impact ....................................................................................... 40 3.2.8. Interference with Military Operations ................................................................. 41 ii 3.2.9. Loss of Ecosystem Services ................................................................................ 42 3.2.10. Increased Risk of Other Hazards ......................................................................... 43 3.2.11. Decreased Tax Base ............................................................................................ 43 3.2.12. Health and Environmental Impacts from Fire Retardants ................................... 43 Estimation of Total Costs and Losses .......................................................................... 45 Gaps and Unknowns ...................................................................................................... 51 This publication is available free of charge from: of Thisfree charge from: is available publication https://doi.org /10.6028/NIST.SP.1215 iii List of Figures Figure 1.1: Donovan and Rideout C+NVC Model ................................................................... 2 This publication is available free of charge from: of Thisfree charge from: is available publication List of Tables Table 1.1: Summary of the Wildfire Damage Function Literature ........................................... 5 Table 1.2: The Costs Associated with Wildfire Management by Responsible Stakeholder .... 8 Table 1.3: The Value Change (Net Losses) From Wildfire by Responsible Stakeholder ........ 9 Table 2.1: Estimated costs to convert different types of terrain to comply with FireWise requirements are listed in Table 1. This table is modified from Stockmann, 2007 (Figure 15). ................................................................................................................................................. 14 Table 3.1: Hurricane Evacuation Costs ($1988) ..................................................................... 36 Table 3.2: Situation 209 Data ................................................................................................. 38 Table 4.1: Costs Associated with WUI Fires .......................................................................... 46 Table 4.2: Losses Associated with WUI Fires ........................................................................ 48 Table 4.3: Estimated Total WUI Costs and Losses ($2016) ................................................... 50 Table 5.1: Magnitude of Cost/Loss and Uncertainty at National Level ................................. 52 https://doi.org /10.6028/NIST.SP.1215 iv v This publication is available free of charge from: https://doi.org/10.6028/NIST.SP.1215 Introduction: The Economics of Wildland/WUI Fire Management The economics of wildfire, particularly the idea
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