Economic Valuation of Forest Ecosystem Services: Methodology and Monetary Estimates

34 Pages Posted: 29 Apr 2009

See all articles by Aline Chiabai

Aline Chiabai

Fondazione Eni Enrico Mattei (FEEM); Basque Centre for Climate Change (BC3)

Chiara Travisi

Fondazione Eni Enrico Mattei (FEEM)

Helen Ding

Fondazione Eni Enrico Mattei (FEEM)

Anil Markandya

Basque Centre for Climate Change (BC3); University of Bath

Paulo A. L. D. Nunes

University of Padua - Dipartimento Territorio e Sistemi Agro Forestali (TeSAF)

Date Written: April 29, 2009

Abstract

By using ad hoc value transfer protocols, this paper offers a methodological contribution and provides accurate per hectare estimates of the economic value of some selected ecosystem services for all forest biomes in the world, identified following the Millennium Ecosystem Assessment taxonomy MEA. The research also estimates potential total economic losses from policy inaction in year 2050. Final results show that total losses are significant. The total figure is €78 billion, the greatest losses coming from North America and Mexico, followed by Africa, Russia and some Asiatic countries. Most of this loss is attributable to provisioning services and carbon sequestration, while only a minor part is due to loss of cultural services. In terms of biomes the greatest losses are from boreal and warm mixed forests, followed by tropical forests. These results may be surprising to some who argue that it is the loss of tropical forests, particularly the Amazon, that is the most significant. A detailed analysis, shows, however, that this is not the case. The best estimates point to greater losses in areas where use and non-use values are highest, which includes North America.

Keywords: Forest, Ecosystem Services, Biodiversity, Valuation, Value Transfer

JEL Classification: O13, Q23, Q26, Q51, Q54, Q57

Suggested Citation

Chiabai, Aline and Travisi, Chiara and Ding, Helen and Markandya, Anil and Dias Nunes, Paulo Augusto, Economic Valuation of Forest Ecosystem Services: Methodology and Monetary Estimates (April 29, 2009). FEEM Working Paper No. 12.2009. Available at SSRN: https://ssrn.com/abstract=1396661 or http://dx.doi.org/10.2139/ssrn.1396661

Aline Chiabai (Contact Author)

Fondazione Eni Enrico Mattei (FEEM) ( email )

C.so Magenta 63
Milano, 20123
Italy

Basque Centre for Climate Change (BC3)

Gran Vía 35-2
Bilbao, Vizcaya 48009
Spain

Chiara Travisi

Fondazione Eni Enrico Mattei (FEEM) ( email )

Corso Magenta 63
20123 Milan
Italy

Helen Ding

Fondazione Eni Enrico Mattei (FEEM) ( email )

Isola di San Giorgio Maggiore
Venice, 30124
Italy
+39 041 2700436 (Phone)
+39 041 2700413 (Fax)

HOME PAGE: http://www.feem.it/Feem/default.htm

Anil Markandya

Basque Centre for Climate Change (BC3)

Gran Vía 35-2
Bilbao, Vizcaya 48009
Spain

University of Bath ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

Paulo Augusto Dias Nunes

University of Padua - Dipartimento Territorio e Sistemi Agro Forestali (TeSAF) ( email )

Legnaro, Padova 35020
Italy

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