Review of Agricultural Economics—Volume 25, Number 1—Pages 218–233 Economics and Prescribed Fire Law in the United States Jonathan Yoder, Marcia Tilley, David Engle, and Samuel Fuhlendorf Prescribed burning is increasingly recognized as a useful but risky land management and conservation tool. Common law relating to prescribed fire is generally predicated on negligence rules. However, virtually all states also have statutory law specifying liability rules or criminal penalties for prescribed burning, and the laws in many states have been changing substantially in recent years. We develop an economic model of the incentive and welfare effects of prescribed burning, where both the burner and potential victims of escaped fires can reduce expected damage with precautionary effort. The model provides implications regarding the comparative advantages of strict liability versus negligence rules. We then examine the characteristics and geographic distribution of prescribed fire liability law in the United States in the context of the model. Specifically, we discuss possible economic underpinnings of the recent emergence of statutes in southeastern states that are more supportive of prescribed fire use, despite its associated risks. T he use of prescribed fire faced strong resistance from policy makers and nat- ural resource managers throughout much of the 20th century (Pyne; Biswell), but is increasingly recognized as a useful tool for promoting rangeland productiv- ity, biodiversity, and for reducing wildfire risk and severity (Bernardo, Engle, and McCollum; Svejcar; Briggs and Knapp; Zimmerman; Babbitt; Pattison). 1 Nonethe- less, prescribed burning is an inherently risky resource management tool. A fire set by the U.S. National Park Service near Los Alamos, New Mexico, in May 2000 ■ Jonathan Yoder is Assistant Professor in the Department of Agricultural Economics, Washington State University (research completed while at Oklahoma State University Department of Agricultural Economics). ■ Marcia Tilley is a Professor in the Department of Agricultural Economics, Oklahoma State University. ■ David Engle is a Professor in the Department of Plant and Soil Sciences, Oklahoma State University. ■ Samuel Fuhlendorf is an Assistant Professor in the Department of Plant and Soil Sciences, Oklahoma State University.