Sustainable Forest Management (SFM) Toolbox

Tool Details

Financial and economic evaluation guidelines for community forestry projects in Latin America

Author Cubbage, F., Davis, R., Frey, G. & Chandrasekharan Behr, D.
Year of publication 2013
This report covers the principles of financial and economic analysis to improve the implementation of forestry projects in Latin America. A financial analysis considers costs, prices, and profits of carrying out a project or activity in terms of market prices. For a simple production process that occurs in one year, with a fixed production factor, a variable factor of production, and a product, expenses are termed total, variable, fixed, average and marginal costs. The main stages of the financial and economic analysis include defining the project objectives, collecting data for analysis, the estimation of inputs for activities, costs, and prices, the development of cash flow tables, the use of profitability indicators to estimate the financial or economic returns, the actual implementation of the project, and monitoring and evaluation.
Type of Tool
Guidelines, manual, kits for trainers
Scale of Application
Forest Management Unit
Forest Type
All forest types (natural and planted)
Primary Designated Function
Management Responsibility