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I'm sharing this response from Adam via email:

For wildfires, we seek to capture the total, direct costs (public and private data) for damage to homes, businesses, vehicles, crops, infrastructure and wildfire suppression costs. Of course, there are indirect costs such as wildfires producing sustained poor-air quality. Also, the mental and physical health impacts from disasters or the downstream economic impact of wildfires on natural capital and dependent sectors are not captured. So this cost figure is a conservative estimate of what is truly lost but cannot be completely measured.