Forest Economics and Environmental Valuation

Abstract

Students learn theoretical concepts and apply practical techniques for the valuation environmental services. They will get to know how these methods can support decisions regarding the optimal allocation of natural resources. Based on national and international case studies, the students will practice what was learned in class by doing practical exercises related to such cases.

Objective

The students should understand the purpose of valuing ecosystem services and the importance in policy formation. Furthermore, they should learn, how people's preferences for ecosystem services can be elicited, and how the concept of economic value can adequately be applied. The participants should be able to apply valuation methods, to recognize the strengths and weaknesses of each approach, and to avoid common mistakes made in valuing ecosystem services.

Content

This course combines lectures and practical exercises. It consists of analyzing the forest sector, presenting national and international environmental problems and discussing economic approaches to solve them. Besides valuation based on market prices, indirect and direct valuation approaches will be introduced, such as travel-cost, implicit-price and productivity-oriented methods as well as contingent valuation and choice experiments. The theoretical background of these approaches will be explained, and their contribution to an optimal natural resource allocation and to the design of environmental policies will be discussed. Practical exercises will be prepared by the students at home and presented in class.

Resources