Study on the Development and Marketing of Non-Market Forest Products and Services

The importance of sustainable management of non-market forest goods and services has increased during the last few years. This is also reflected in a number of policy documents within the EU. The new EU Rural Development Regulation speaks about the 'non-productive investments', as investments to enhance the public amenity value of forests. The stakeholder consultation process within the EU Forestry Strategy and the report of the strategy’s implementation identify the issue of creating markets for currently non-market forest goods and services as an emerging issue. Finally, the EU Forest Action Plan (2007-2011) places the valuation and compensation for non-market forest goods and services as one of its 18 key actions.

The issues related to non-market forest goods and services involve social and economic dimensions. Unlike market forest goods and services, non-market ones are not traditionally traded and their value is not defined by the market price. At the same time the access to non-market forest goods and services is largely unlimited and free in most of the EU Member States. These characteristics of nonmarket goods and services, combined with their growing importance and social demands, can lead to an un-sustainable management of these goods and services.

This study was launched as a response to the challenges, presented in the Forest Action Plan and implementation of the key action for valuation and compensation for non-market forest goods and services. The study aims to acquire summarised information on the state-of the-art in classification, characterisation and valuation of non-market forest goods and services. It also seeks to find whether the development on theoretical aspects of environmental valuation over the last decades have been, or could be, translated into operational schemes and mechanisms for valuation and compensation for non-market forest goods and services, used as policy instruments. Finally, the study intends to create a foundation for discussion and policy conclusions on the feasibility of application of economic instruments for encouraging and supporting the supply of non-market forest goods and services.