Valuing fire planning alternatives in forest restoration: using derived demand to integrate economics with ecological restoration

Assessing the value of fire planning alternatives is challenging because fire affects a wide array of ecosystem, market, and social values. Wildland fire management is increasingly used to address forest restoration while pragmatic approaches to assessing the value of fire management have yet to be developed. Earlier approaches to assessing the value of forest management relied on connecting site valuation with management variables. While sound, such analysis is too narrow to account for a broad range of ecosystem services. The metric fire regime condition class (FRCC) was developed from ecosystem management philosophy, but it is entirely biophysical. Its lack of economic information cripples its utility to support decision-making. We present a means of defining and assessing the deviation of a landscape from its desired fire management condition by re-framing the fire management problem as one of derived demand. This valued deviation establishes a performance metric for wildland fire management. Using a case study, we display the deviation across a landscape and sum the deviations to produce a summary metric. This summary metric is used to assess the value of alternative fire management strategies on improving the fire management condition toward its desired state. It enables us to identify which sites are most valuable to restore, even when they are in the same fire regime condition class. The case study site exemplifies how a wide range of disparate values, such as watershed, wildlife, property and timber, can be incorporated into a single landscape assessment. The analysis presented here leverages previous research on environmental capital value and non-market valuation by integrating ecosystem management, restoration, and microeconomics.

A new process for organizing assessments of social, economic, and environmental outcomes: case study of wildland fire management in the USA

Ecological risk assessments typically are organized using the processes of planning (a discussion among managers, stakeholders, and analysts to clarify ecosystem management goals and assessment scope) and problem formulation (evaluation of existing information to generate hypotheses about adverse ecological effects, select assessment endpoints, and develop an analysis plan). These processes require modification to be applicable for integrated assessments that evaluate ecosystem management alternatives in terms of their ecological, economic, and social consequences.We present 8 questions that define the steps of a new process we term integrated problem formulation (IPF), and we illustrate the use of IPF through a retrospective case study comparing 2 recent phases of development of the Fire Program Analysis (FPA) system, a planning and budgeting system for the management of wildland fire throughout publicly managed lands in the United States. IPF extends traditional planning and problem formulation by including the explicit comparison of management alternatives, the valuation of ecological, economic and social endpoints, and the combination or integration of those endpoints. The phase 1, limited prototype FPA system used a set of assessment endpoints of common form (i.e., probabilities of given flame heights over acres of selected land-resource types), which were specified and assigned relative weights at the local level in relation to a uniform national standard. This approach was chosen to permit system-wide optimization of fire management budget allocations according to a cost-effectiveness criterion. Before full development, however, the agencies abandoned this approach in favor of a phase 2 system that examined locally specified (rather than system-optimized) allocation alternatives and was more permissive as to endpoint form. We demonstrate how the IPF process illuminates the nature, rationale, and consequences of these differences, and argue that its early use for the FPA system may have enabled a smoother development path.