Economic Valuation And Market Capture Of Forest Functions In Developing Countries

Focuses on recent advances in the economic evaluation of forestry activities and, in particular, on how techniques for valuing non-timber forest benefits in monetary terms can assist the development of forest policy and management systems.

Included are several case studies, like: The Leuser ecosystem, Sumatra; The Borivili National Park, India; Tropical rain forests, Costa Rica; Mangrove forests, Philippines. This document has been prepared by: IAC and EC-LNV

In recent years, issues related to forests have come to prominence on the international agenda. This reflects growing concern over the fate of forest ecosystems and possible loss of the benefits which they provide. In the process of moving towards sustainable management of forests, there is growing demand for practical methodologies for full valuation of forests which permit the contributions of forests to be presented more clearly and in a manner which decision-makers can readily appreciate. Appropriate techniques should be able to adequately capture forest values in terms of the environmental, social and production functions and to recognise the worth of both marketed and non-marketed goods and services. This publication reviews approaches which can overcome the limitations of conventional analysis and provides a reference framework to help clarify what approaches to forest valuation can or cannot work. The publication is not itself a manual on valuation techniques but by reviewing the various approaches, makes it possible to select appropriate methodologies for which it then refers readers to other publications which can provide ''how to do'' details.

This book offers information and insights into the potential of market and policy instruments in improving the state of the world's forests. It advocates the use of the concept of optimal mix of markets and policies as an approach to view the appropriate and operational roles of market and government in dealing with forestry issues. It does not offer a list of policy recommendations to be used as a general tool to combat the threats facing the world's forests. Obviously, the optimal mix of markets and policies must depend on the varying national and local conditions and, more specifically, on the level of development.

Resource-management decisions, especially in the area of protecting and maintaining biodiversity, are usually incremental, limited in time by the ability to forecast conditions and human needs, and the result of tradeoffs between conservation and other management goals. The individual decisions may not have a major effect but can have a cumulative major effect. Perspectives on Biodiversity reviews current understanding of the value of biodiversity and the methods that are useful in assessing that value in particular circumstances. It recommends and details a list of components-including diversity of species, genetic variability within and among species, distribution of species across the ecosystem, the aesthetic satisfaction derived from diversity, and the duty to preserve and protect biodiversity. The book also recommends that more information about the role of biodiversity in sustaining natural resources be gathered and summarized in ways useful to managers. Acknowledging that decisions about biodiversity are necessarily qualitative and change over time because of the nonmarket nature of so many of the values, the committee recommends periodic reviews of management decisions.

This text provides a comprehensive introduction to the important issues of land use and forest economics. The authors employ economic tools to study the allocation of land among alternative activities such as agriculture, grazing and forestry which impact upon the landscape. The book begins by explaining general economic concepts of well-being, welfare measurement and economic rents before providing a synopsis of various environmental economic issues including non-market valuation, cost-benefit analysis and sustainable development. The authors then move on to address several critical topics relating to land use, the conservation of nature and the protection of agricultural land. These include an analysis of agricultural land use from the perspective of urban expansion and the interface between crop production and nature. They also discuss the economics of public lands, range and ranching, forestry, and global climate change in a comprehensive fashion. Throughout the book, the focus is on enhancing welfare for society as a whole, rather than for particular individuals, interest groups or sectors. In this way, the authors present a balanced and just approach to policy decisions regarding the allocation of scarce land resources. Accessible and self-contained, this text will become indispensable to postgraduate and undergraduate students on a range of courses including agricultural and environmental economics, geography and resource management. Although primarily a textbook, it will also provide a useful overview for policymakers, range scientists, public land managers and anyone with an interest in the economic evaluation of rural land use and forestry.