So, it's an interesting idea to change the choice from: either "don't spend the money" or "spend the money on prevention and fixing our shit"
To: from "the money is spent either way, might as well fix our shit."
If there's also one state that has demonstrated a willingness to use economics to encourage "correct" choices/behavior in consumers, it's California, so they should be real sympathetic to this idea :-)
I don't know if I'd support such a proposal or not. That would require some serious analysis and consideration of the details, but I don't think we should just dismiss the whole idea.
But there are plenty of things that can be done to reduce the number of wildfires. Remember the fires caused by old and poorly maintained PG&E lines?
The Airport Fire that just burned in Orange and Riverside counties was started by some county public works employees pushing boulders around with a bulldozer (to build a barricade preventing motorcyclists from going into the canyons and starting a wildfire) on a red flag day, literally at the peak of the heat hottest day of the entire year.
This sort of shit should see whoever sent them out there fired for gross misconduct and potentially charged. I certainly wouldn't keep my job if I fucked up that badly.