Managed burning of forests: Balancing economic incentives, risks, and liability

Managed burning of forests can provide benefits to society including mitigated wildfire risk, improved habitat, and more. However, adverse outcomes of escaped fire or smoke pose risks. I reviewed the evolution of the law regulating forest management burns, explored the current legal architecture, and analyzed the economic incentives for involved actors, in order to identify policy options. Liability standards through most of the twentieth century increasingly placed risk burden on landowners and burners, but increased recognition of the benefits of burns led many States to reverse this trend and limit the liability for a subset of qualified burns. Still, there is broad uncertainty about the liability, which can lead to increased costs for all sides. In view of the societal benefits of burning, States may consider how best to provide legal clarity, how to balance associated risks, and where to place the liability burden.