An alternative incentive structure for wildfire management on national forest land.

Wildfire suppression expenditures on national forest land have increased over the last 35 years, exceeding US $l billion in 2000 and 2002. These increases in expenditure have been attributed, in part, to a century of aggressive wildfire suppression, resulting in a buildup of fuel on the nation's forests. The efficiency of the current incentive structure faced by Forest Service fire managers is analyzed. An alternative incentive structure is presented that encourages fire managers, as they work to limit wildfire damages, to contain costs and consider the beneficial effects of wildfire.