Values-At-Risk (VAR) Calculation Tool

What Is It?

The Value-at-Risk (VAR) Calculation Tool is a way of calculating post-fire valuation of secondary effects of wildfire. The things that are included in these effects are human life and safety, cultural and ecological resources, land use, and existing infrastructures at risk from possible increased runnoff, erosion, flooding, sedimentation, and vulnerability to invasive weeds. The valuation of these things (values-at-risk) is a complex process and this tool is a framework to standardize and simplify the valuation task in the context of post-fire assessment and treatment recommendation.

To use the tool, input

  1. Identification and classification of VAR. For market Values-at-Risk, this includes estimated cost to repair, replace, or restore the value of the loss of use.
  2. The threat assessment, including the probability that the threat will occur, providing a spatial link to Values-at-Risk.
  3. Find the VAR Area Map made by grouping related VAR-threat associations into Map Zones
  4. Include potential treatment recommendations including costs of treatments and probabilities of threat occurring after the treatment has been implemented

Outputs will include the B/C ratios and/or the IMV of the identified VAR and organize and summarize the justification for recommended treatment expenditures.

How Do I Get It?

The VAR Calculation Tool version 8.0.1 is contained in an excel spreadsheet, and use of the tool is outlined in the PDF Assessing Post-Fire Values-at-Risk with a New Calculation Tool.

Related Methods

Nonmarket valuation is a method to estimate the value of goods and services that are not commonly bought and sold in markets.
Use of data that was collected by individuals other than the investigator. This includes newspapers, census data, maps, etc. Secondary data analysis is often a starting point for other social science research methods.

Related Partners

The Forest Service was established in 1905 and is an agency of the U.S. Department of Agriculture. The Forest Service manages public lands in national forests and grasslands, which encompass 193 million acres.

Contact Information

Pete R Robichaud is the author of the VAR Calculation tool.