In recent years, issues related to forests have come to prominence on the international agenda. The increasing attention reflects growing concern over the fate of forest ecosystems and possible loss of the benefits that they provide. In the process of moving towards sustainable management of forests, there is a growing demand for practical, comprehensive valuation methodologies that present the contributions of forests more clearly and in a manner that decision-makers can readily appreciate. Appropriate techniques should make it possible to capture the value of forests adequately in terms of environmental, social and production functions and to recognize the worth of both marketed and non-marketed goods and services. This publication reviews approaches that can overcome the limitations of conventional analysis and provides a reference framework to help clarify whether given approaches to forest valuation can or cannot work. The publication is not a manual on valuation techniques, but in reviewing the various approaches it makes it possible to select appropriate methodologies, and it refers readers to other publications that provide technical details.
