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Natural disturbances and natural hazards in mountain forests: a framework for the economic valuation

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Author Info
Sandra Notaro ()
Alessandro Paletto
Abstract

This paper focuses on the economic aspects of the protective role of forests against natural hazards, developing an estimation methodology applicable on a local scale. We identified the main variables that influence on a local level those forest attributes involved directly or indirectly in protection with the aim of zoning forests in homogeneous areas in terms of the level of protection they offer. Applying the replacement cost method a monetary value of the protective function can be estimated for homogeneous zones. The zoning permits the cost of replacement works to be calculated precisely according to the characteristics of the territory in each zone. The methodology was tested in the province of Trento (North East Italy) in an area where forests serve multiple functions and where the social objectives are intimately linked to those of indirect protection of the mountain slopes and direct protection of human activities. The estimation of the protective function of mountain forests enables environmental concerns to be included in economic decision-making by integrating economic and ecological approaches. It could be useful as a criterion for ranking different forest management options, i.e. forest management approaches based on the principle of close-to-nature forestry with management forms that focus on the productive function of forests. Accordingly it could enable forest managers to build consensus around management forms that take into account natural hazards and natural disturbances.

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Paper provided by Department of Economics, University of Trento, Italia in its series Department of Economics Working Papers with number 0808.

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Date of creation: 2008
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Handle: RePEc:trn:utwpde:0808

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  1. Carson, Richard T. & Hanemann, W. Michael, 2006. "Contingent Valuation," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 2, chapter 17, pages 821-936 Elsevier. [Downloadable!] (restricted)
  2. Farber, Stephen C. & Costanza, Robert & Wilson, Matthew A., 2002. "Economic and ecological concepts for valuing ecosystem services," Ecological Economics, Elsevier, vol. 41(3), pages 375-392, June. [Downloadable!] (restricted)
  3. repec:bep:evoice:3:2007:3:2 is not listed on IDEAS
  4. Adamowicz W. & Louviere J. & Williams M., 1994. "Combining Revealed and Stated Preference Methods for Valuing Environmental Amenities," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 271-292, May. [Downloadable!] (restricted)
  5. Barkmann, J. & Glenk, K. & Keil, A. & Leemhuis, C. & Dietrich, N. & Gerold, G. & Marggraf, R., 2008. "Confronting unfamiliarity with ecosystem functions: The case for an ecosystem service approach to environmental valuation with stated preference methods," Ecological Economics, Elsevier, vol. 65(1), pages 48-62, March. [Downloadable!] (restricted)
  6. Swinton, Scott M. & Lupi, Frank & Robertson, G. Philip & Hamilton, Stephen K., 2007. "Ecosystem services and agriculture: Cultivating agricultural ecosystems for diverse benefits," Ecological Economics, Elsevier, vol. 64(2), pages 245-252, December. [Downloadable!] (restricted)
  7. de Groot, Rudolf S. & Wilson, Matthew A. & Boumans, Roelof M. J., 2002. "A typology for the classification, description and valuation of ecosystem functions, goods and services," Ecological Economics, Elsevier, vol. 41(3), pages 393-408, June. [Downloadable!] (restricted)
  8. Saez, Carmen Almansa & Requena, Javier Calatrava, 2007. "Reconciling sustainability and discounting in Cost-Benefit Analysis: A methodological proposal," Ecological Economics, Elsevier, vol. 60(4), pages 712-725, February. [Downloadable!] (restricted)
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