San Francisco Fed analysing Rising Wildfire Risks

James Aylward and Luiz E. Oliveira of SF Fed in this research:

The 12th District economy is considerably more exposed to wildfire risk than other parts of the country. Not only are wildfires more prevalent within the District, but relatively more people live, work, and contribute to their local economy in areas that are more prone to wildfires. Our analysis suggests that the District’s wildfire risk will intensify over the next two decades as climate change continues. Moreover, beyond wildfire risk to economic activity, increases in adverse health effects and elevated mortality may have even larger repercussions (Burke et al. 2020). Our analysis of wildfire risk is one example of the growing importance of climate change for assessing economic conditions and prospects that may be relevant for Federal Reserve policymaking over the long term (Daly 2019).

It is no more about price/inflation/financial stability risks. Wildfire risks becoming part of central bank research kit as well..

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