Valuation of Market and Non-Market Goods and Services of the Forest Ecosystem of Northern Iran (Hyrcanian Forests)

Document Type : Research Paper

Authors

1 Ph.D. Student, Department of Agricultural Economics, Faculty of Agriculture and Food Industry, Science and Research Branch, Islamic Azad University, Tehran, Iran.

2 Assistant Professor, Department of Agricultural Economics, Faculty of Agriculture and Food Industry, Science and Research Branch, Islamic Azad University, Tehran, Iran.

3 Professor, Department of Agricultural Economics, Sari University of Agricultural Sciences and Natural Resources, Iran.

4 Associate Professor, Department of Agricultural Economics, Faculty of Agriculture and Food Industry, Science and Research Branch, Islamic Azad University, Tehran, Iran.

10.22054/eenr.2024.80304.188

Abstract

Ecosystems are the source of production and supply of a wide range of goods and services for human societies around the world and are considered one of the important elements for providing economic and livelihood welfare. Following the determination of the role of environment and natural resources in human well-being, many efforts have been made to value environmental goods and services. In this regard, this study paid attention to the value of marketable and non-marketable goods and services in the Hyrkani forest ecosystem. Based on this, the market value of standing wood (cubic meters per hectare) by the market price method and the non-market value of oxygen production and carbon dioxide absorption, carbon sequestration, water production and supply, soil maintenance, runoff control in the three forestry areas of Gilan, Mazandaran, and Golestan by the method Replacement cost was estimated. The results showed that the total value of the goods and services of the Hyrkan forests was estimated to be equal to 68092 thousand billion rials, among which the market value of wood is 23561 thousand billion rials, carbon sequestration is 27755 thousand billion rials, soil maintenance is 15497 thousand billion rials, water production is 671 thousand billion rials, runoff control 327 thousand billion rials, oxygen production and carbon dioxide absorption 279 thousand billion rials. Meanwhile, the value of carbon sequestration and the value of wood respectively have the highest value among the studied ecosystem services.
Introduction
Forest ecosystems are a source of production and supply for a wide range of goods and services to human societies worldwide. They are essential for economic and livelihood well-being (Cavatassi, 2004). Forests are increasingly subjected to overexploitation and recreational activities (Cole, 1996). However, they also serve as important tourist destinations, attracting local, regional, and international tourists annually (Mugambi, 2006). Nevertheless, many forest ecosystem services—such as climate regulation, oxygen production, carbon dioxide sequestration, carbon storage, water production, flood control, and soil retention—are provided outside market mechanisms. The Hyrcanian forest ecosystem, also known as the Caspian Sea forests, spans 3.2 million hectares in Iran and features a temperate warm to semi-warm climate. Beyond its recreational and tourism potential, the ecosystem is a biodiversity hotspot, housing 5% of Iran's flora and providing numerous ecosystem services. Based on forest stands, types, and communities, categorized by elevation above sea level, this study focuses on mapping plant species diversity across three forestry watersheds; Asalem, Nur-Chamestan, and Minudasht in Guilan, Mazandaran, and Golestan, respectively. The primary objective of this research is to assess the economic value of forest ecosystem services, with a particular emphasis on non-market functions such as oxygen production, carbon dioxide absorption, carbon sequestration, water production, soil retention, and flood control.
Methods and Material
In this research, Geographic Information Systems (GIS) and the Integrated Valuation of Ecosystem Services and Tradeoffs (InVEST) tool were utilized to estimate the economic value of these services across three forestry districts in Guilan, Mazandaran, and Golestan provinces. By applying these tools to forest inventory data, the research seeks to provide forest managers and policymakers with a robust framework for making informed, economy-based decisions.
Results and Discussion
This study clearly demonstrates that carbon dioxide (CO2) uptake and oxygen (O2) production rates vary significantly among forest communities due to differences in site conditions, species composition, elevation, soil types, and aspects. The forest communities studied showed a wide range of production capacities. The average value of CO2 sequestration and O2 production in the forest communities of the three northern provinces of the country ranges between $179 and $409, with an overall average estimated at $289. Carbon sequestration (40.7%), timber value (34.6%), and soil conservation (22.7%) account for the largest shares of the estimated value.
Conclusion
The annual value of the forests studied (77,683 hectares) was estimated at 22,998,423,840 million rials for five non-market and one market service. The total value for all northern Iranian forests (2,300,000 hectares) is 68,092,600,492 million rials. This figure is significant, especially given Iran’s limited vegetation cover and arid climate. Given the importance of these services, it is crucial to allocate substantial budgetary resources for their conservation and management.

Keywords

References

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Journal of Environmental and Natural Resource Economics
Volume 4, Issue 8
June 2024
Pages 103-136

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History

  • Receive Date: 24 June 2024
  • Revise Date: 17 November 2024
  • Accept Date: 17 November 2024

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