The Secret Cost of Wildfires on the US Economy

Wildfires cost the U.S. economy far more than the price of putting out the flames. When homes and businesses are destroyed, communities lose property, housing becomes scarcer, and rents can rise. Governments also spend billions fighting fires, while taxpayers ultimately help foot the bill. Then there is the health cost. Wildfire smoke can trigger breathing and heart problems, leading to medical expenses, missed work, and premature deaths. Between 2006 and 2020, wildfire smoke was linked to about 15,000 deaths in the U.S., with an estimated economic burden of $160 billion. Wildfires also hurt workers and businesses. Smoke can keep people away from jobs, damage workplaces, and reduce earnings. Between 2007 and 2019, wildfire smoke cut U.S. earnings by an estimated $125 billion per year. In other words, the true cost of a wildfire extends well beyond burned buildings. It can drain the economy for years.