In this paper, we use operational data collected for large wildland fires to estimate the parameters of economic production functions that relate the rate of fireline construction with the level of fire suppression inputs (handcrews, dozers, engines and helicopters). These parameter estimates are then used to evaluate whether the productivity of fire suppression inputs during extensive fire suppression efforts are similar to productivity estimates derived from direct observation and used as standard rates by the US Forest Service. The results indicated that the production rates estimated with operational data ranged from ~14 to 93% of the standard rates. Further, the econometric models indicated that the productivity of all inputs taken together increases more than proportionally as their use is increased. This result may indicate economies of scale in fire suppression or, alternatively, that fire managers learn how resources may be deployed more productively over the course of a fire. We suspect that the identified productivity gaps are primarily due to unobserved factors related to fire behaviour, other resources at risk, firefighter fatigue, safety considerations and managerial decision-making. The collection of more precise operational data could help reduce uncertainty regarding the relative importance of factors that contribute to productivity shortfalls.

In this paper, we investigate homeowner preferences and willingness to pay for wildfire protection programs using a choice experiment with three attributes: risk, loss and cost. Preference heterogeneity among survey respondents was examined using three econometric models and risk preferences were evaluated by comparing willingness to pay for wildfire protection programs against expected monetary losses. The results showed that while nearly all respondents had risk seeking preferences, a small segment of respondents were risk neutral or risk averse. Only respondents who had personal experience with the effects of wildfire consistently made trade-offs among risk, loss and cost and these respondents were willing to pay more for wildfire protection programs than were respondents without prior experience of the effects of wildfire. The degree to which people with prior experience with the effects of wildfire can effectively articulate an economic rationale for investing in wildfire protection to other members of their own or other communities facing the threat of wildfires may influence the overall success of wildfire protection programs.