The applications of economic valuation of forest ecosystem services are highlighted in benefit cost analysis and forest resource accounting. Benefit cost analysis is a technique used in evaluating alternative investment projects by the government and private sector. This technique has been used in many development and investment projects in the past 50 years. It helps decision makers to choose the best investment decision, assess regulations, and access public policy tradeoffs. In doing so, both the market and non-market goods and services need to be included in conducting economic or social benefit cost analysis. Applications of forest ecosystem services are highlighted in forest resource accounting, valuation of timber resources, valuation of recreation benefits using the travel cost method, and valuation of protected area using the contingent valuation method. There are many other economic valuation applications that use different methods for valuing forest ecosystem services. You can explore these applications, which are available from various journals and reports. It is hoped that you can conduct economic valuation of selected forest ecosystem services after completing this module.
