Research Paper on Valuing Forests: Market & Non-Market Benefits

Introduction

The valuation of forest is mostly described from an economic perspective. As a result of the assessment, the classification of the benefits of forests has been classified into the market and non-market benefits. Although there are other ways that the forests can be used for example as home for wildlife, there are other benefits that forests bring. With intent of establishing the advantages, the assessment through the use of forest land and the benefits of both the land and the forests had to be established. The curiosity of knowing the options to obtain value from the forest, the critical assessments had to be carried out to find out (Bishop, 1999). This paper seeks to identify the valuation of forests together with the benefits that are connected with the value added by forests.

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Background

Forests are known to provide ecological value through regulation of climate in the entire regions that are surrounded by forest. With that in mind, the other ecological services are regulation of the hydrological cycle, protection of watersheds, regulate flow of rain water, protect soils from soil erosion and other genetic information that is anticipated to be exposed through technology. The diversity of forests has to be maintained such that the natural nature in the forests can be maintained to attain advantages that enable functionality. The reduction of forest area alters the functionality and therefore leads to diversity. It is with the reduction of forest area that the value of forest is identified when difficulties are experienced (Secretariat of the Convention on Biological Diversity, 2001).

Since forests most of the times provide non-market valuation, there are various ways through which the forests are given value. In the instance of land purchase or buying a house, the economic value of the forest is always considered. The procedure is described as a revealed preference dividend into; travel and cost method which is mostly based on recreational purposes, the discrete choice method where the values are looked at against the choices. Stated preference is another procedure through which individuals are to demonstrate willingness to pay for the services. The general classification of economic value is classified into the use values and n0n use values. Use values are direct benefits while the non-use are mostly related to the conservation of forests (Secretariat of the Convention on Biological Diversity, 2001).

Objectives

To assess the value of the forest

To identify the advantages of knowing the value of forests

Research Questions

What is the importance of forest valuation?

What are the benefits of maintaining the forest value?

Literature Review

According to Powell, Ickowitz, McMullin, Jamnadass, Padoch, Pinedo-Vasquez, & Sunderland (2017), a forest is a landscape with a significant population that has a wide range of tree cover. Many people in the current day practice various kinds of agriculture even where they combine the trees with other crops just for the sake of the benefits of trees. People may have changes their ways from hunters and gatherers to maintaining large farms with crops for the purpose of biodiversity. People depend on the forest as a resource especially because it forms part of agriculture and is a significant part in business activities beneficial to individuals.

The National Academics of Sciences Engineering and Medicine describes the forest values and benefits categorized into 3 various categories as will be discussed below.

Employment and income- the forests provide income and employment in that where a forest is owned by an individual, they can make some profit from selling some trees. Then for the government dealings with maintenance of the forest, a significant population has been employed by the government to help in managing the forests. The industries that have also been created for the purpose of producing wood products is high therefore has also provided income and employment for the members. In terms of agriculture in the public sector, people have also benefitted by acquiring chances of employment on the agricultural sector.

Timber and wood products- the major contributors of experience by people are timber and other wood products. The forests that produce the products are mostly non-federal. The softwood and hardwood harvested reveal a significant population forming the basis of the argument of high production. Different cities and towns harvest the timber therefore the amount put together is quite a significant total. The timber and wood is from the national forests, public forests, and other categories that also contribute to the total amount of wood and timber that is available. The increase is expected to grow year by year as a result of the measure put in place to help maintain increase in production of wood and timber whose benefits are well known.

Non-timber forest products- aside from the tangible products from the physicsl products, there are other benefits that come in naturally simply by having forests. The products are like pine cones, honey, mushrooms, and maple syrup that are obtained from forests. These products are obtained through certain specialties other than the common forests. The trees required to produce some of the non-forest products. There are those harvested from large plantations of specific category with the help of natives who are aware of methods of harvesting the products. An example is with mushrooms which are harvested for economic benefits and they form a significant part of the economy. Mushrooms are harvested in non-federal forests.

Forests serve as storehouses for carbon- the forests help in the absorption of the harmful greenhouse gases that help to change the climate. Forests are also a source of medicinal herbs and they help to prevent erosion of the soul and hold water bodies to prevent floods. After receiving rainfall, people benefit by having sufficient water for drinking and other household uses (World Wide Fund, 2019).

According to World Wide Fund (2019), the forests should be protected against deforestation since the advantages of having them uncut outweigh that of cutting the trees. Although it is necessary for production of timber, it is important that measures be introduced to help in the protection of forests.

Conclusion

Forests form a significant part in agriculture and should be protected. The valuation of forests reveals that forests play a significant role ranging from economic benefit and also agricultural benefits. The forests provide employment and economic sustainability both for governments and individuals. The forests also help in provision of timber and wood that aid in production of various products. The other benefits are that the forests act as water catchment areas and through the forest it is easier to predict the weather status in a region. The forests serve as habitats for animals and also some plants like mushrooms that are a significant part of the lives of people.

References

Bishop, J, (1999). Valuing Forests: A Review of Methods and Applications in Developing Countries. https://pdfs.semanticscholar.org/5b95/1b1993b70b9b469be76ce6fb8aecb3dc6dc4.pdf

Powell, Ickowitz, McMullin, Jamnadass, Padoch, Pinedo-Vasquez, & Sunderland (2017). http://www.fao.org/fileadmin/user_upload/agn/pdf/Powelletal_ICN21_ForestsandTreesforNutritionSensitive_FINAL_NoEndnote.pdf

Secretariat of the Convention on Biological Diversity, (2001). The Value of Forest Ecosystems. https://www.cbd.int/doc/publications/cbd-ts-04.pdf

World Wide Fund (2019). Importance of Forests. https://wwf.panda.org/our_work/forests/importance_forests/