Module 5 Summary

There are three approaches that can be used in economic valuation of forest ecosystem services: market-based approach, revealed preference approach, and stated preference approach. The number of techniques can be used depending on the nature of forest ecosystem services. We need to select the most appropriate method in valuing forest ecosystem services so that the economic value derived can be used by policy makers in the decision making process. Integrating economic values of forest ecosystem services is important for evaluating forest land use options, forest and ecosystem accounting, project evaluation, compensation of damage, sectoral priority, and forest taxation. Econometric and statistical modelling skills in data analysis are highly needed to provide efficient and better estimates of economic values.