Abstract
Abstract Accounting for externalities generated by fire spread is necessary for managing fire risk on landscapes with multiple owners. In this paper, we determine the optimal management of a synthetic landscape parameterized to represent the ecological conditions of Douglas-fir (Pseudotsuga menziesii) plantations in southwest Oregon. The problem is formulated as a dynamic game, where each agent maximizes their own objective without considering the welfare of the other agents. We demonstrate a method for incorporating spatial information and externalities into a dynamic optimization process. A machine-learning technique, approximate dynamic programming, is applied to determine the optimal timing and location of fuel treatments and timber harvests for each agent. The value functions we estimate explicitly account for the spatial interactions that generate fire risk. They provide a way to model the expected benefits, costs, and externalities associated with management actions that have uncertain consequences in multiple locations. The method we demonstrate is applied to analyze the effect of landscape fragmentation on landowner welfare and ecological outcomes.
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