PUBLIC FINANCING OF FOREST MANAGEMENT
A CASE STUDY ON 'TAX FOR ENVIRONMENTAL SERVICES' AND 'FUND FOR
FOREST FUNCTIONS OF GENERAL BENEFIT' IN CROATIA
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In light of decreasing economic viability the financing of growing society demand in social and environmental
services through the principle of "sustainable forest management" is getting more and more difficult. In front of this
background FAO Sub-regional Office for Central and Eastern Europe looks for national experiences on solutions and
promotes positive records to member countries.
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This study discusses financing of forest management measures demanded by the society that can not be provided through
the markets of forest products and services. It analyses a financial tool in Croatia, where a specific income tax of
0.07 % is collected by state owned forest enterprise , to be utilized for development of forest resources. The main
in Croatia with this
system have been activities of forest protection and rehabilitation, stand improvement and afforestation.
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Study outcomes indicate that public financing of forest management can be an important tool
for accomplishing essential forest services requested by society, that are not adequately to be provided via markets.
The utilization of a specific tax in Croatia to finance forest measures has shown to work sufficiently towards covering
society demands. The average distribution of funds for the period 1999 - 2004 amounts to 17.2 US$/year and ha. |
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| The system assumes involvement of the whole society in forest management financing and
interests thus citizens in the development of forests. The collection of tax fund is thus stable and the budget to be
distributed to promote public services is relatively secured. Independency from annual public budget negotiations
provides forest managers a flexible planning and implementation of forestry activities. |
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The current study got logistic and scientific support provided by
and by
, Germany,
while resources have been made available through the
.
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