It’s Time to Get the Incentives Right on Wildfires

The cost trends around wildfire also are troublesome. Since 1990, the number of homes destroyed has tripled. Yet in the last 30 years, 60 percent of new homes in the U.S. were built in the wildland-urban interface, the private land next to public forests.

Federal firefighting costs average $3 billion annually; also triple the amount from a decade ago. Our research and others indicates that at least one-third and up to 95 percent of the firefighting bill goes to defend private homes….

What has not yet been triedis altering the pattern of future home development on fire-prone lands. The key is to get the incentives right. Currently, local governments benefit from a federal government subsidy that pays the bulk of firefighting costs and underwrites risky and expensive developments. Passing on more costs to local governments – where home building is permitted – would incentivize better planning.

Author:
Chris Mehl

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