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THE WILDERNESS SOCIETY Economic Value of Forest Ecosystem Services: A Review By Douglas J. Krieger, Ph.D. THEECONOMICVALUEOF FOREST ECOSYSTEM SERVICES: A REVIEW By Douglas J. Krieger, Ph.D. an analysis prepared for The Wilderness Society CONTENTS Page i Acknowledgments...............................................................................................................................ii Executive Summary...........................................................................................................................iii Chapter 1. Ecosystem Services: Values and Valuation................................................................1 Economic Value of Environmental Goods and Services...................................................1 Measurement of Economic Values.........................................................................................2 Valuation approaches and value measures.....................................................................4 Chapter 2. The Value of Forest Ecosystem Goods and Services.............................................7 Watershed Services....................................................................................................................7 Water quantity....................................................................................................................9 Water quality....................................................................................................................10 Soil Stabilization and Erosion Control..............................................................................12 Air Quality................................................................................................................................12 Climate Regulation and Carbon Sequestration................................................................13 Biological Diversity.................................................................................................................14 Recreation and Tourism.........................................................................................................15 General recreation............................................................................................................15 Hunting and fishing........................................................................................................17 Non-timber Commercial Forest Products.........................................................................20 Cultural Values.........................................................................................................................21 Aesthetic and passive use values of forests and wilderness....................................21 Endangered species habitat............................................................................................23 Cultural heritage values...................................................................................................23 References..........................................................................................................................................26 TWS Offices....................................................................................................................................31 Figures Figure 1. Ecosystem service values of U.S. forests ............................................................iv Figure 2. Consumer surplus for a change in an ecosystem good or service .................3 Tables Table 1. Range of estimated forest ecosystem service values by region.........................v Table 2. Estimate of forest ecosystem values......................................................................8 Table 3. Water quantity service values of forests..............................................................11 Table 4. Summary of water quality values of forests......................................................13 Table 5. Summary of carbon sequestration values of forests.......................................15 Table 6. Recreation and tourism values of forests....................................................19-20 Table 7. Summary of cultural values of forests.........................................................24-25 Economic Value of Forest Ecosystem Services: A Review Page ii ACKNOWLEDGMENTS Cindy De Grood, Research Analyst in The Wilderness Society’s Ecology and Economics Research Department (EERD), conducted preliminary research for this report. EERD Resource Economist Carolyn Alkire reviewed the report and made helpful suggestions with assistance from colleagues Spencer Phillips and Pete Morton. Research for this report was supported by a grant from the Alex C. Walker Educational and Charitable Foundation. March 2001 The Wilderness Society 1615 M Street, NW Washington, D.C. 20036 Phone: 202-833-2300 Fax: 202-429-3945 Cover Photo by Charlie Orr, “Big Trees, California” Editor: Deanne Kloepfer Designer: Mitchelle Stephenson Economic Value of Forest Ecosystem Services: A Review
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