The millions of dollars spent to extinguish large wildfires are widely reported and used to underscore the severity of these events. Extinguishing a large wildfire, however, accounts for only a fraction of the total costs associated with a wildfire event. Residents in the wildland-urban interface (WUI) are generally seen as the most vulnerable to fire, but a fuller accounting of the costs of fire also reveals impacts to all Americans and gives a better picture of the losses incurred when our forests burn.

A full accounting considers long-term and complex costs, including impacts to watersheds, ecosystems, infrastructure, businesses, individuals, and the local and national economy. Specifically, these costs include property losses (insured and uninsured), post-fire impacts (such as flooding, erosion, and water quality), air quality damages, healthcare costs, injuries and fatalities, lost revenues (to residents evacuated by the fire, and to local businesses), infrastructure shutdowns (such as highways, airports, railroads), and a host of ecosystem service costs that may extend into the distant future.

Day-lighting the true costs of fire highlights opportunities to use active management to curb escalating costs. Unhealthy forests can increase the risk of fire.1 Investing in active forest management is therefore valuable in the same way as investing in one’s own preventative health care. Upfront costs can be imposing, and while the benefits may seem uncertain, good health results in cost savings that benefit the individual, family, and society. This analogy helps to highlight the importance of fostering resilient ecosystems before fires occur, as a tool for reducing the costs associated with suppression and recovery as well as extending benefits to a far wider circle of individuals than might be initially expected.

This report begins with an analysis of the many costs associated with wildfire. Several case studies illustrate a range of the full extent of fire impacts, suggesting patterns that can be included in future budgeting and planning processes at all levels of government. The true costs of wildfire are shown to be far greater than the costs usually reported to the public, anywhere from 2 to 30 times the more commonly reported suppression costs. Finally, a series of recommendations help focus the way these costs might be better considered. As the number of acres burned each year continues to increase, there is a justifiable sense of urgency. With a new administration and an incoming Congress with many new faces, the Western Forestry Leadership Coalition sees a fresh opportunity to address this long-standing forest management challenge.

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Cost of Wildfires