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The Economics Implications of Fuel Management: Sagebrush Rangelands

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The Economics Implications of Fuel Management: Sagebrush Rangelands. Presenter: Laine Christman (UNR) For the Eastern Nevada Landscape Coalition and Nevada Pinyon -Juniper Joint Summer Conference July 16 th , 2014. Authors: Michael Taylor, Kimberly Rollins, Mimako Kobayashi, Robin Tausch. - PowerPoint PPT Presentation
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The Economics Implications of Fuel Management: Sagebrush Rangelands Authors: Michael Taylor, Kimberly Rollins, Mimako Kobayashi, Robin Tausch Presenter: Laine Christman (UNR) For the Eastern Nevada Landscape Coalition and Nevada Pinyon-Juniper Joint Summer Conference July 16 th , 2014
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Page 1: The Economics Implications of Fuel Management: Sagebrush Rangelands

The Economics Implications of Fuel Management: Sagebrush Rangelands

Authors:Michael Taylor, Kimberly Rollins, Mimako Kobayashi, Robin Tausch

Presenter: Laine Christman (UNR)

For the Eastern Nevada Landscape Coalition and Nevada Pinyon-Juniper Joint Summer Conference

July 16th, 2014

Page 2: The Economics Implications of Fuel Management: Sagebrush Rangelands

Introduction and Study Area

Why the Great Basin? Suffering from invasive grass and

PJ encroachment Wildfire contributes to these

threats Ecosystem changes effects costs

of fighting fire, habitat, ranching, recreation values, etc.

Treatments to reduce threats Reduce fuel

loading/characteristics – lessen wildfire severity

Restore health and resiliency of the ecosystem

What is the value of these treatments?

One approach – put benefits in terms of reduced future wildfire suppression costs

Wyoming

Mountain Big

Page 3: The Economics Implications of Fuel Management: Sagebrush Rangelands

The Model

Inputs Treatment cost (per acre) and probability of success FRI and cost of wildfire (per acre) Transition time between ecologic health states

Assume a finite number of year without wildfire or treatment

Assume fire in “healthy state” is , fire in “unhealthy state” is

Simulation Based – dynamic Changes happen over time Uncertainty regarding state, success, fire

Defined States of Health Mountain Big Sagebrush

Healthy = Shrubs/ native grass or mix PJ/shrubs/ native grass Unhealthy = Closed Canopy PJ or invasive grass dominated

Wyoming Sagebrush Steppe Healthy = Shrubs/grass Unhealthy = Decadent sagebrush/grass or invasive grass

dominated

Page 4: The Economics Implications of Fuel Management: Sagebrush Rangelands

STM

Big Mountain Sagebrush (>6500 ft)

Page 5: The Economics Implications of Fuel Management: Sagebrush Rangelands

STM

Wyoming Sagebrush Steppe (4700-6500 ft)

Page 6: The Economics Implications of Fuel Management: Sagebrush Rangelands

Results - WSS

 Wyoming Sagebrush Steppe - Initial

Ecological State

 WSS-1

Healthysagebrush

WSS-2 Mature woody brush with annual

grass

WSS-3 Annual Grass

Dominated

Avg. Total Suppression Costs (NPV) – No Treatment

$350 $364 $390

Avg. Total Suppression Costs (NPV)– With Treatment

$56 $231 $251

Avg. Cost of Treatment(s) $19.50 $205 $164Average Wildfire NET Suppression Costs Savings (NPV)

$272 -$72 -$2,782

Average Benefit Cost Ratio (NPV) 13.3 0.7 0.06

WSS-1 •Benefit = $272/acre (CBR = 13.3)•Tx Cost - $19.50/acres and highly successful are preventing transition•Expected wildfire cost savings = $293/acre

WSS-2 • Treatment is

expensive ($205/acre)

• only successful half the time

• Failure moves to WSS-3

WSS-3 • reduces wildfire

suppression costs• Treatment is

extremely expensive

• Rarely successful

Page 7: The Economics Implications of Fuel Management: Sagebrush Rangelands

Result Table - MBS

 Mountain Big Sagebrush - Initial Ecological

State

 MBS-1

Healthysagebrush

MBS-2 PJ, mature

sagebrush &cheatgrass

MBS-2 Closed-

canopy PJ & cheatgrass

MBS-3 Cheatgrassdominated

Avg. Total Suppression Costs (NPV) – No Treatment

$273 $561 $576 $1,448

Avg. Total Suppression Costs (NPV) – With Treatment

$16 $158 $793 $894

Avg. Cost of Treatment(s) $19.50 $45.50 $205 $164Ave Wildfire NET Suppression Costs Savings (NPV)

$90 $358 -$419 -$2,332

Ave. Benefit Cost Ratio (NPV) 5.7 9.0 -1.1 0.2

MBS-1 & MBS-2•Only BCR greater than 1•Cheap, successful, prevent transition

MBS-3& MBS-4•Expensive, unsuccessful•Not a good return on investment

Page 8: The Economics Implications of Fuel Management: Sagebrush Rangelands

Results and Conclusion

Take Home Message Fuel treatment are cost effective for healthiest states only

Treatment costs are relatively cheap and success is relatively high

Results hold for a range of different success rates Fuel treatment costs greater than expected wildfire costs for unhealthiest states

Once degraded, benefits reduce dramatically Rehabilitation costs are expensive and success

is relative low

Fuel Treatment Priority for a uniform landscape

Focus on lands that have not yet transitioned

WSS-1 = 13.3MBS-1b CBR = 9.0MBS-1a CBR = 5.7

Page 9: The Economics Implications of Fuel Management: Sagebrush Rangelands

Thank You


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