Investing in Wildfire-Resilience

Earth Economics was invited by Governor Newsom’s office to present to California’s State Land Use Planning Work Group, part of the Wildfire Mitigation Advisory Committee. The Committee provides a forum for addressing wildfire preparedness and mitigation issues of statewide concern, sharing best practices, seeks comments and specific input on programs and technical issues, and informs local agencies and the public of applicable new laws and regulations.

At the September 21st meeting, Glen Delaney and Carson Risner presented on an analysis commissioned by NRDC (Natural Resources Defense Council), California’s Home Hardening Economy: Investing in a Resilient Future. Wildfire home hardening is the process of retrofitting the exterior of homes and altering their immediate surroundings to increase resilience to embers, flames, and radiant heat. Earth Economics shared that investing in a statewide home hardening sector—a crucial wildfire preparedness measure—will increase wildfire resilience and bring economic benefits with every dollar rippling throughout the economy and return about $1.70 in total economic activity.

In early 2025, 32 million acres of land in California were categorized as Fire Hazard Severity Zones, containing about 620,000 to 770,000 single-family homes at risk of wildfires. If all homes in wildfire hazard zones were moderately hardened, between $16 billion to $20 billion would be spent in direct expenditures. Comparatively, the recovery costs from the 2025 Palisades and Eaton fires in Los Angeles County are expected to be upwards of $76 billion to $131 billion.

The full report can be found be found here.