Home » Economic » Environmental Economics

Environmental Economics Explained

Source: www.earthmind.net
Topic: Environmental Economics

Sort Desciption: Environmental Economics Explained. Page 1. Environmental Economics Explained. Part 1: How Economic Valuation can help pay for Conservation. by FRANK VORHIES ...

Content Inside: Environmental Economics Explained Environmental Economics Explained Part 1: How Economic Valuation can help pay for Conservation by FRANK VORHIES Think of a natural forest in the tropicsa rainforest in South America a moist mountain forest in central Africa a coastal mangrove forest in Southeast Asia. What benefits does this forest generate and to whom? Are these benefits and the distribution of these benefits sufficient to ensure that the forest will be conserved? Economic valuation is one of the tools we can use to assess the benefits of forest conservation as well as how these benefits are distributed among the stakeholders. Through an analysis of benefits and costs we can begin to understand some of the forces which may be threatening the existence of the forest. Think of a natural forest as a business. Who are its customers? What goods and services are they interested in? Or are they interested in ground resources such as cleared land for farming or the minerals under the ground? These interests may threaten the business. A business-approach to ecosystem management uses economic valuation as a practical tool to assess potential benefits and costs and to identify potential customers and threats. Think of neighbours as customers. What goods and services do they want from the forest? Timber for building material? Timber to convert into charcoal for fuel? Non-timber products such as fruits and honey? Medicinal plants? Thatching grasses? Do they want access to lands for grazing their livestock or to watering holes during the dry season? How can we develop a profitable sustainable relationship between the forest and its neighbours? Can the neighbours pay in cash or in kind for the goods and services they receive from the forest? In order to put a value on the demand of neighbourslocal communities and indigenous peoples economists use participatory valuation techniques which allow people to define forest resources within the context of their own perceptions ...