IDEAS home Printed from
   My bibliography  Save this article

The economic value of forests in supplying local climate regulation


  • Eugenio Figueroa
  • Roberto Pasten


type="main" xml:id="ajar12096-abs-0001"> Several authors have argued that forest ecosystems serve as a hedge against extreme climatic events at a local scale. Consequently, the local climate regulation ecosystem services provided by forests can be economically valued by evaluating the reduction (increase) in the insurance premium that risk-averse individuals are willing to pay when forest cover is marginally increased (reduced). This type of insurance value associated to forest ecosystems services is estimated to be USD 0.0733 per hectare of forest for Chilean farmers. The empirical framework proposed in this paper is useful and relevant for the cost-benefit analysis of natural resource conservation investments.

Suggested Citation

  • Eugenio Figueroa & Roberto Pasten, 2015. "The economic value of forests in supplying local climate regulation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(3), pages 446-457, July.
  • Handle: RePEc:bla:ajarec:v:59:y:2015:i:3:p:446-457

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Valente, Donatella & Miglietta, Pier Paolo & Porrini, Donatella & Pasimeni, Maria Rita & Zurlini, Giovanni & Petrosillo, Irene, 2019. "A first analysis on the need to integrate ecological aspects into financial insurance," Ecological Modelling, Elsevier, vol. 392(C), pages 117-127.
    2. Soto-Montes-de-Oca, Gloria & Bark, Rosalind & González-Arellano, Salomón, 2020. "Incorporating the insurance value of peri-urban ecosystem services into natural hazard policies and insurance products: Insights from Mexico," Ecological Economics, Elsevier, vol. 169(C).
    3. Sun, Xuehui & Li, Xueming & Guan, Zhangnan & Liu, Jian & Zhang, Shuping, 2017. "The use of meteorological data to assess the cooling service of forests," Ecosystem Services, Elsevier, vol. 25(C), pages 28-34.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ajarec:v:59:y:2015:i:3:p:446-457. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley Content Delivery). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.