The Economic Valuation of Non-Marketed Forest Benefits in Saxony (PDF)

Diploma Thesis from the year 2010 in the subject Economy - Environment economics, grade: 1,5, University of Bayreuth (Helmholtz Center for Environmental Research), language: English, abstract: This thesis investigates the potential and limitation of benefit transfer application for the economic valuation of non-marketed forest benefits in Saxony. This time- and cost saving valuation technique can support political and business decisions by transferring monetary costs and benefits from environmental changes from a studied to an unstudied site. As benefit transfer is currently not applied in Saxony, the question becomes how far it can contribute to a better-informed regional decision procedure. To elicit the methodological experiences of this application field, a literature review investigates the technical state of the art. From a methodological perspective, research and application manages spatial, temporal, and ecological site differences and accuracy tests very heterogeneously. The majority refines function transfer with varying models methodologically, drawing on primary valuation studies on forest recreation.

A minor fraction concentrates on applications with simplistic unit transfer are of a likewise technically inconsistent manner. Absence of homogeneous ethodological performance and experiences suggest an application of unit transfer for Saxony
following a guideline by Navrud (2010). In a compact manner it guides a benefit transfer application on forest benefits. A transfer of a WTP for forest biodiversity demonstrates income-adjusted unit transfer to be principally possible for contexts requiring knowledge gains. However, under current conditions it faces distinct limitations. Valuation is restricted to a small empirical pool on non-marketed forest benefits in such a way that most indirect use and non-use values remain unapproachable.

Therefore, further primary valuation studies are fruitful additions to enlarge the number of appraisable benefits. If thorough benefit transfers are pursued in Saxony, incomeadjusted unit transfer is recommended according to Navrud's (2010) guideline to enable a methodological homogeneous and well-reported valuation. Further, the literature should be collected from databases with empirical studies satisfying the criteria of site similarity. Facilitating a regular prospective application in Saxony, interest and demand needs to be raised to create a legal framework for the internalization of non-marketed forest benefits in political and business decisions.