Valuation of Biodiversity Benefits (OECD)

Box 1.2 Value of Turkey’s ForestsA recent review of the non-timber benefits provided by Turkey’s forests [Bann and Clemens (1999)] illustratesthe value of some of the services provided by the biodiversity they contain. As can be seen in the table below, thenon-timber benefits of Turkish forests – many of which depend on biodiversity – are substantial at the local,national, and global levels, and exceed the timber benefits, which are about US$ 26 per hectare per year. Equallyclearly, however, decisions that focus on only one of these non-timber benefits will omit important additionalbenefits, and so may tend to result in policies that under protect forests.Estimated lower-bound of non-timber benefits from Turkish forestlandUS $/hectare/yearMainly local benefits: Non-wood forest products 18.4Wildlife 2.0Recreation 0.1Informal fuelwood 2.2Mainly national benefits: Watershed protection 7.4Mainly global benefits: Carbon storage 26.0Genetic resources 5.0Total 61.5Additional values associated with protected areas 2.6Source: Dixon and Pagiola, Chapter 3.Note: All estimates are lower bounds, and dependent on the assumptions described in the paper. Estimates areaverage expected benefits for the entire forested area (18 million hectares) except for the additional benefits fromprotected areas, which apply only to the 2.5 million hectares of protected forests.Biodiversity valuation so far has not achieved the same level of popularity in policymakingas it enjoys in academic circles. The controversies surrounding some methods may have precluded thefull use of valuation as an important tool to inform policymakers. Nonetheless, its importancestrengthening the case for biodiversity conservation and its sustainable use is increasingly beingrecognised. The Convention of Biological Diversity (CBD) Conference of the Parties (COP) throughits decision IV/10 underscores the need to undertake valuation and the important role economics playin this subject (www.biodiv.org):“… Recognising that economic valuation of biodiversity and biological resources is an importanttool for well-targeted and calibrated economic incentive measures:1. Encourages Parties, Governments and relevant organisations:…(c) To take into account economic, social, cultural and ethical valuation in thedevelopment of relevant incentive measures; …”As essential as the demonstration of biodiversity values for conservation is the capture ofthese values by stakeholders at the local level “where actual resource use decisions are made” (Dixonand Pagiola). In order to raise the economic value of biodiversity conservation more effort could bemade to enable local stakeholders to capture use values from tourism and other non-consumptive usesof biological resources, and for the identification of, and capture of, the non-use values and ecologicalservice values associated with biodiversity, including through GEF-type grant funding. Nevertheless,where there is a high level of uncertainty over the value of biodiversity but a high risk of extinction, itis important that other policy measures, including those mentioned in Part 3 and 4, such as expertopinion and safe minimum standards, support biodiversity conservation policy.25