This helps to keep our stories and resources free for all, and it also supports independent journalism dedicated to sustainable development. In absolute terms, the largest areas of private forests are found in North America, Europe, and Oceania. Globally, 84% of forests and 90% of other wooded land are public. After South America, Europe (without the Russian Federation) has the highest percentage of forests designated for social services (8.3% of total forest area). Introduction – Measuring progress towards sustainable forest management. We would be grateful if you would consider joining as a member of The EB Circle. Uncertainty in ownership issues, lack of up-to-date information, rapid changes, and the fact that forest ownership has been inserted only very recently into forest inventories limit the availability of reliable information. It’s not too late to transform life as we know it into a greener future where forests are at the heart of sustainable development and green economic growth. ADVERTISEMENTS: Role of Forests in Economic Development of a Country! 4. Harvesting kelp began on a large scale during World War I, when it was used as a source of potash to make gunpowder. For a small donation of S$60 a year, your help would make such a big difference. The countries who reported employment information account for about 67% of global forest area. Already, many leaders are glimpsing the potential for renewable energy and nature-based assets, but for transformation to happen, forests need to become a universal political priority. This study develops an economic model called ASFORESEE (Alpine Space FORest Ecosystem Services Economic Evaluation) to assess the protective service forests provide against rockfall within a standardized framework adopting a precautionary approach. The World Bank and the Program on Forests, housed at the Bank, help governments steer economic policy in a “forest-friendly” way. FOREST GOODS AND SERVICES Forests worldwide generate a substantial number of goods and services that benefit humankind. They provide several goods which serve as raw materials for many industries. Abstract Natural regeneration of secondary forests can be an important source of recovery of ecosystem services (ES) critical for humanity, especially for climate change mitigation and adaptation goals. Economic contribution of forest products-related manufacturing and services: $14 billion (US Census) Forest-related tourism: $1.9 billion; Forests provide materials that are used to create many types of products. 2002)(PDF, 0.3 MB) Economic Value of Forest Ecosystem Services: A Review (Krieger et al. Use our online application to apply for 3SquaresVT, Essential Person, Fuel Assistance & Reach Up. A decline in the value of wood removals (as observed in Brazil) could indicate that the sector has become more cost-efficient. On average, employment declined in Asia and Europe, while in the other regions, employment increased slightly. It also indicates the contribution of the sector to reducing poverty since non-wood forest products such as food and fodder are mostly collected in rural areas by relatively poor people. What are the protective effects of forests? And the answer to sustainable forest management, moving towards a green economy, lies in our hands. Forests play an important role in the economic development of a country. … 7. Using data from TEEB (The Economics of Biodiversity and Ecosystems), which they call “arguably the most comprehensive ecosystem services value database,” the authors mapped and analyzed the economic value of ecosystem services in tropical areas of Latin America, Asia and Africa.. economic terms? Collecting statistical data about the value-added for the whole forestry sector (including processing) would give a better indication of economic sustainability. Climate-driven forest pressures are foreseen to increase and competing socio-economic demands for forest services result in multiple drivers of forest change. You can help us remain free and independant as well as to develop new ways to communicate science by becoming a Patron! Availability of information about non-wood forest products is very low. Prevent Soil erosion: Soil erosion is an everyday natural activity happening due to winds and floods. Forests also provide homes, security and livelihoods for 60 million indigenous peoples. However, natural regeneration entails synergies … Most of the decline can probably be attributed to increases in productivity achieved for example by increased mechanization. On average, the reported value of wood harvested appears to have increased in all regions except Asia and South America. In Brazil, the value of wood removals declined and then recovered, following a shift from harvesting natural forests to forest plantations which led to lower prices, but a greater productivity. At the same time, forests also store carbon, preserve soils and nurture a diversity of species. They provide several goods which serve as raw materials for many industries. The services forests provide are essentially to every aspect of our quality of life. These figures thus show that fuelwood is roughly ten times less valuable per m3 than industrial roundwood. More... Recreation, tourism, education, and conservation of sites with cultural or spiritual importance are examples of some of the social functions played by forests. Properly cared for, Trees are valuable and growing assets worth three times the investment. What products are extracted from forests? 5. 8.3 How many people are employed in forestry? About a third of countries and territories reported having forest areas designated for social services, and East Asia, Europe, and South America have good availability of information, while data are largely missing from other regions. The reported employment in forestry declined globally by about 10% from 1990 to 2000. The forest sector is also an important source of both formal and informal jobs, particularly in remote areas where there are few economic alternatives. In Europe (including the Russian Federation), the decline in employment numbers can also be explained by the restructuring and privatization of forest activities. Today people who depend on forests for their livelihoods are struggling to survive. Three specific products and countries accounted for the relatively high value of other plant product removals: bidi leaves in India, cork in Spain and green manure in the Republic of Korea. It is also about the animals that live in the forest. The measure of economic value that is relevant is individuals’ willingness to pay for those benefits. The general trend between 1990 and 2000 is an increase of 26% in the reported value of non-wood forest products, from US$4.8 billion to US$6.1 billion. As stewards of New Hampshire's forests and related resources, the Division of Forests and Lands protects and promotes the values provided by trees, forests, and natural communities. The area of forests that is set aside for such functions indicate to what extent this role of forests is taken into account by countries and forest managers. How can forests affect climate change? The USDA Forest Service has a multiple-use mission to manage various forest resources such as timber, recreation, range, minerals, wilderness, fish, and wildlife, state and private forestry programs, etc. 2000) The value of the world’s ecosystem services and natural capital (Costanza et al. Economic Impact and Contribution Analysis. Only information on employment related to the primary production of forest goods and related services is presented here. Despite all of these priceless ecological, economic, social and health benefits, we are destroying the very forests we need to live and breathe. The information provided on this page is taken from the Trees Pay Us Back brochure (PDF, 280 KB), produced by the U.S. Forest Service.. Mangrove ecosystems provide significant socioeconomic benefits, such as timber, fish, tourism opportunities, and environmental services (e.g., coastal protection, water regulation, carbon sequestration, and nursery habitat for a wide-ranging diversity of species). The Forest Service uses the IMPLAN database and modeling system to carry out economic impact studies of the consequences of Agency decisions and proposed actions and to describe the current economic contribution of natural resource management on the National Forests … Forests are recognized as an integral part of national economies, providing a wide range of production inputs, environmental goods, food, fuel, medicines, household equipment, building material and raw materials for industrial processing. Some reported statistics may include the numbers of people collecting fuelwood and non-wood forest products for subsistence purposes rather than strictly the number of people working in forestry for a wage or salary. Why Forests are Important. Forests also provide non-market amenity services: the outputs or benefits of a forest that cannot be bought and sold in a traditional market. They are the largest carbon storage systems on the planet and provide some $40 million per year in economic activity to the North Coast of California, among other benefits The combined value of wood harvested is an indicator of the contribution of forests to national economies, and this information is used to develop and monitor national policies, set priorities and allocate resources. Asia and Europe accounted for almost 90% of the total reported value of non-wood forest products harvested with other regions reporting minimal values owing to limited information availability. Globally, the total reported value of wood harvested in 2005 was US$57 billion for industrial roundwood and US$7 billion for fuelwood, which adds up to a total of US$64 billion [Table 7.2]. A forest ecosystem is not just about the forest environment, however. Bushmeat was by far the most important animal product, with a value of US$0.6 billion. In Africa, private forests represent less than 2% of total forests. Benefits also include the hosting and protection of sites and landscapes of high cultural, spiritual, or recreational value. 8.3 How many people are employed in forestry? Use our online application to apply for 3SquaresVT, Essential Person, Fuel Assistance & Reach Up. Want more forests? Due to the lack of reliable information, trends are difficult to discern for non-wood forest products. Our old-growth redwood forests provide valuable ecosystem services as well. US-dominated Covid funding: What does this mean for developing Asia? Forests provide a home to more than 300 million people worldwide and they sustain economic growth. 6. To report benefits fraud, call 1-800-479-6151 toll free during regular business hours. CI works with San Martín’s indigenous peoples, exchanging traditional and science-based knowledge to help develop sustainable forestry practices. However, the quality of information poses some problems. These non-timber benefits are known as “ecosystem services.” Maintaining and enhancing these functions is a part of sustainable forest management, hence information on status and trends in socio-economic benefits is essential. Forests provide a home to more than 300 million people worldwide and they sustain economic growth. For example, the reported value of bushmeat outside Europe was only US$5 million, likely an underestimate since much of the bushmeat produced in other regions is unreported, unregulated or illegal. Published under the authority of the GreenFacts Scientific Board. This summary is free and ad-free, as is all of our content. Public ownership of forests is predominant in all regions. Forest ownership is changing in many countries: increasingly shifting from the state to local communities and to individual households, resulting in an increasing complexity in stakeholder relations. 8.3 How many people are employed in forestry? 8. These values might be conveniently classified as: 8.1 What is the total value of harvested wood? FOREST GOODS AND SERVICES Forests worldwide generate a substantial number of goods and services that benefit humankind. For example, birds nest in the trees of a forest, members of the fungus kingdom grow on the forest floor, and a variety of insects and mammals also take up their homes in a forest. Furthermore, targeted investments in forestry could generate up to 10 million new jobs around the world. How much forest is there on the planet and at what rate is it disappearing? They maintain ecosystem functions and give the environmental, social, and economic benefits that people value. Continued and uncontrolled deforestation has devastating consequences for the environment, wildlife, communities, and economies around the world. The various public, industrial, and private owners of forestland may have quite different objectives for the forest resources they control. 1997)(PDF, 0.5 MB) Globally, an estimated 3.7% of forest area (1.7% if Brazil is not taken into account) is primarily devoted to social functions. 3. Overall, in 2000, 11 million people were reported as being employed in forestry [Table 7.6], of which over half were employed in the primary production of goods. Economic Benefits of Trees Trees Pay Us Back The information provided on this page is taken from the Trees Pay Us Back brochure (PDF, 280 KB), produced by the U.S. Forest Service. Since ‘public forests’ include those owned by villages, communities, and indigenous groups, it is difficult to draw conclusions about the management of public forests. To report benefits fraud, call 1-800-479-6151 toll free during regular business hours. Box 7.1 on forest ownership and resource tenure. The level of employment in forestry is an indicator … Plant products accounted for about three-quarters of this value, with food having the highest value (US$1.3 billion), followed by other plant products. Despite the common assumption that protecting areas that provide high-value ecosystem services … Conserving and expanding forests need to be recognized as a business opportunity. In 2004 trade in forest products was estimated at $327 billion. During that time, removal was unregulated and highly destructive to … Forests cover 31% of total global land area. Economic Reasons for Conserving Wild Nature (Balmford et al. Richard Matthews is a consultant, eco-entrepreneur, green investor and owner of THE GREEN MARKET, a leading sustainable business blog. The total value of international trade in non-wood forest products amounted to US$11.0 billion which indicates that the total value of non-wood forest products harvested (US$4.7 billion) is an underestimate. 8.5 How much of the forest area has been set aside for recreation and other social functions? Receive the latest news in sustainability, daily or weekly. In relative terms, private forests are more prevalent in Central America (56% of forest area), Europe excluding Russian Federation ( 51% of forest area), and North America (29% of forest area). These Forest Ecosystem Services, or forests’ contribution to people, are made up of many elements, some of which might be more obvious than others. These changes affect the way forests are managed and have social, political, and economic implications. Forests contribute to poverty reduction, economic growth and employment, and generate essential ecosystem services that sustain key sectors such as agricultural, energy, and water.Forests also help countries respond to climate change. However, after adjusting for inflation, the value of wood removals has actually fallen at the global level. By quantifying the relative value of ecological parameters (vegetation-soil-slope complexes), researchers were able to estimate the annual economic benefit of maintaining forests in the watershed for power services to be 2.2 times that if it were harvested once for timber. Economists around the world have proven that by not integrating the values of forests into their budgets, countries and businesses are paying a high price. Cancer rates and mortality, types and causes, Endocrine disrupting properties of pesticides. Forestry Economics Services is an independent organisation operating out of South Africa, which has published annual Benchmarking Cost and Business Reports on South African plantation forestry since 1978. Wood grown in forests serves as a source of energy for rural households. Forests are crucial to life, this includes providing refuge for many species, and clean air for all but they are also important to the global economy. And the answer to sustainable forest management, moving towards a green economy, lies in our hands. 8.2 What is the value of other forests products harvested? Below, we are looking at the interaction between the different production systems and the types of ecosystem services according to the typology of The Economics of Ecosystems and Biodiversity (TEEB). Economic Importance Kelp forests provide a variety of commercial and ecosystem services to humans. This contrasts with the fact that in terms of m3 the amounts of industrial roundwood and fuelwood harvested are roughly the same. Countries reporting on forest ownership account for 77% of total forest area. Forests play an important role in the economic development of a country. Stay updated with the best news and views. Today people who depend on forests for their livelihoods are struggling to survive. Most of the world’s paper is made from […] What will 2021 bring in the world of conservation? However, they also contain products that are necessary to the viability of rural agricultural communities. Economic Services Division (ESD) ESD administers several benefits that help Vermonters meet their basic needs. The value of non-wood forest products harvested, like the value of wood production, is an indicator of the contribution of forests and woodlands to national economies. These values might be conveniently classified as: They maintain ecosystem functions and give the environmental, social, and economic benefits that people value. Use more wood. What are the economic and social benefits of forests? Economic services Forests form the basis of a variety of industries including timber, processed wood and paper, rubber, fruits, etc. Forestry - Forestry - Purposes and techniques of forest management: The forests of the world provide numerous amenities and ecosystem services in addition to being a source of wood products. Forests contribute to the livelihoods of 1.6 billion people worldwide. A clearer definition of social services provided by forests is needed for future assessments to help reduce the inconsistencies between country reports. Economic Benefits of Trees Trees Pay Us Back. When we add it up, an investment of US$30 billion fighting deforestation and degradation could provide a return of US$2.5 trillion in new products and services. Most of these jobs (8.3 million) were based in India and China. The only clear conclusion is that Europe seems to give the most attention to the social services provided by forests as evidenced by active designation of areas for this purpose. The services forests provide are essentially to every aspect of our quality of life. Forests also provide homes, security and livelihoods for 60 million indigenous peoples. Properly cared for, Trees are valuable and growing assets worth three times the investment. Healthy forests provide the vital environmental services communities rely on. The level of employment in forestry … Despite all of these priceless ecological, economic, social and health benefits, we are destroying the very forests we need to live and breathe. Ultimately ensures Healthy working forests and their sustainability for future generations provide a home to than. 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