Forest Valuation For Decision Making

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.

The degradation of ecosystems, including forests, and the associated loss of biodiversity, particularly due to human-induced threats and climate change, has gained increased attention from scientists and policymakers. The Millennium Ecosystem Assessment presented a new conceptual framework that puts ecosystem services at the centre and links human well-being to the impacts on ecosystems of changes in natural resources. The Economics of Ecosystems and Biodiversity initiative drew further attention to the economic benefits of conserving ecosystems and biodiversity, supporting the idea that economic instruments – if appropriately applied, developed and interpreted – can inform policy- and decision-making processes. Only a few ecosystem services, however, have explicit market value and are traded in open markets: many – especially those categorized as having “passive-use” value – remain invisible and are rarely accounted for in traditional economic systems. The failure to appropriately consider the full economic value of ecosystem services in decision making enables the continued degradation and loss of ecosystems and biodiversity. Most ecosystem services are considered public goods and tend to be overexploited by society. Many methods have been applied to the economic valuation of ecosystem services. The use of these methods, as well as the interpretation of their results, requires familiarity with the ecological, political, normative and socio-economic context and the science of economics. Recognizing, demonstrating and capturing the value of ecosystem services can play an important role in setting policy directions for ecosystem management and conservation and thus in increasing the provision of ecosystem services and their contributions to human well-being. The aim of this manual is to enhance understanding of ecosystem services and their valuation. The specific target group comprises governmental officers in planning units and field-level officers and practitioners in key government departments in Bangladesh responsible for project development, including the Ministry of Environment and Forests and its agencies. Most of the examples and case studies presented herein, therefore, are tailored to the Bangladesh context, but the general concepts, approaches and methods can be applied to a broad spectrum of situations. This manual focuses on valuing forest-related ecosystem services, including those provided by trees outside forests. It is expected to improve valuation efforts and help ensure the better use of such values in policymaking and decision making. Among other things, the manual explores the basics of financial mathematics (e.g. the time value of money; discounting; cost–benefit analysis; and profitability and risk indicators); the main methods of economic valuation; examples of the valuation of selected ecosystem services; and inputs for considering values in decision making.

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

This updated and expanded second edition adds the most recent advances in participatory planning approaches and methods, giving special emphasis to decision support tools usable under uncertainty. The new edition places emphasis on the selection of criteria and creating alternatives in practical multi-criteria decision making problems.

Decision Methods for Forest Resource Management focuses on decision making for forests that are managed for both ecological and economic objectives. The essential modern decision methods used in the scientific management of forests are described using basic algebra, computer spreadsheets, and numerous examples and applications. Balanced treatment is given throughout the book to the ecological and economic impacts of alternative management decisions in both even-aged and uneven-aged forests. In-depth coverage of both ecological and economic issues Hands-on examples with Excel spreadsheets; electronic versions available on the authors' website Many related exercises with solutions Instructor's Manual available upon request

Forests are an important component of natural capital and deliver a broad range of ecosystem services that underpin human well-being. The extent and condition of forests in many parts of the world, however, have declined dramatically during the preceding decades due to unsustainable harvesting of timber, forest fires, urbanization, and conversion to agriculture. At the same time the acknowledged importance of forest ecosystem services (FES) continues to grow, particularly the need for climate change mitigation and adaptation. This paper is a background document developed for the Food and Agriculture Organization of the United Nations (FAO) report on The State of the World’s Forests (SOFO) 2022. It reflects the results of a collaboration between FAO and the Foundation for Sustainable Development (FSD) to update the Ecosystem Services Valuation Database (ESVD). The compilation of systematically reviewed and standardized economic values of FES consolidated in the ESVD includes value estimates for all FES in nine forest ecosystem types and mangroves as per The Economics of Ecosystems and Biodiversity (TEEB) and the System of Environmental-Economic Accounting (SEEA) classifications. This paper offers an improved understanding of the role of forests in sustainable development, and highlights the potential of forests to provide a pathway towards greater resilience and a green recovery.