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Value and valuation of forest ecosystem services
- Zhang, Daowei, Stenger, Anne
- Journal of Environmental Economics and Policy 2015 v.4 no.2 pp. 129-140
- ecological value, ecosystem services, forests, market value, markets, opportunity costs, politics, supply balance
- In this paper, we first present a total forest economic value framework from an anthropocentric instrumental value perspective and differentiate gross value, economic value, market value, and valuation of forest ecosystem services. We then argue that some of the demand-side-based non-market valuation approaches only provide an estimate of gross value, not economic value. Thus, strictly speaking, they are not market valuation per se as the supply side is ignored, and as many non-marketable and non-extractive forest ecosystem services are concerned, it is often the supply side – the opportunity costs of resources used to produce them that determine the economic values of these services. Finally, we identify the role of economic valuation of forest ecosystem services in the political market that often allocates resources directly to produce these services.