Fueling resilience: climate and wildfire risk in the United States

This study examines public financing for wildfires and the role that risk-transfer tools can play in enhancing the resilience of state budgets. It suggests that by pursuing a holistic approach to risk management, governments can reduce volatility in annual budgets and better allocate funding for long-term mitigation, land use planning, and community preparedness.

While wildfire is a natural and important occurrence in the western United States, climate change has resulted in extended wildfire seasons, which are only expected to increase in severity and volatility. As California endures one of the worst fire seasons in the state's history, and the U.S. Forest Service is on track to spend over 50% of its budget putting out fires, it is clear that policymakers must consider new and innovative solutions to manage wildfire costs.