Cabo, Paula2018-04-042018-04-042016Cabo, Paula (2016). Economic impact of forest fires: methodologies for assessing losses”. In Fernández-Núñez, E.; Castro, M. (Eds) Management of agroforestry systems: ecological, social and economic approaches. Bragança: Instituto Politécnico de Bragança. p. 90-112. ISBN 978-972-745-169-2978-972-745-169-2http://hdl.handle.net/10198/16682The forest industry is a strategic sector for countries’ national development, particularly for rural areas, given its economic, social and environmental functions. Fires are among the biggest threats to Portuguese forests. The main objective of this study is to contribute to the understanding of the economic impact of forest fires and its importance for an efficient management of costs. Thus, we discuss optimal level of fire protection and the economic and social impacts of fire, and present some methodologies for assessing losses caused by forest fires. Social and economic impacts of fires can be extensive, long-lasting and difficult to identify and assess. We address the assessment of losses by forest fire on tradable and non-tradable services and goods. The concept of present value is used to assess the losses on tradable goods, such as wood and other forest products; including recreational services and equipment and infrastructures, and the concept of economic value of environmental resources is used to assess the losses on non-tradable goods. Several examples are presented of the assessment of the economic impact of forest fires using market prices, hedonic prices, travel costs, transference of benefits and contingent valuation methods to value losses on nontradable assets and, finally, a practical work exercise assessing the costs of a forest fire is illustrated.engForest firesEconomic impactLosses in tradable and non-tradable goodsbook part