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ValuingValuing NWFP’s NWFP’s ininmediterraneanmediterranean forestsforests
Américo Mendes & Diana FelicianoAmérico Mendes & Diana FelicianoPortuguesePortuguese CatholicCatholic UniversityUniversity –– PortoPorto
FacultyFaculty ofof EconomicsEconomics andand ManagementManagement
WWF WWF CorkCork OakOak LandscapesLandscapes ProgrammeProgrammePalafrugellPalafrugell, 7th , 7th MayMay ofof 20062006
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 22
ValuingValuing MediterraneanMediterranean ForestsForests ––TowardsTowards Total Total EconomicEconomic ValueValue
-- TheThe exampleexample come come fromfrom thethe articlearticle::Carvalho Mendes, A.M.S., 2005. Carvalho Mendes, A.M.S., 2005. PortugalPortugal. . InInValuingValuing MediterraneanMediterranean ForestsForests: : TowardsTowards Total Total EconomicEconomic ValueValue, , MaurizioMaurizio MerloMerlo & & LeliaLelia CroituruCroituru((edseds.). .). WallingfordWallingford, , OxonOxon (UK): CAB (UK): CAB InternationalInternational. . pppp. 331. 331--352.352.
-- Data Data waswas gatheredgathered byby Prof. Carvalho Mendes Prof. Carvalho Mendes throughthrough severalseveral sourcessources..
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 33
EconomicEconomic valuevalue ofof forestforest productsproducts inin Continental Continental Portugal Portugal inin 2001 (Mendes, 2005)2001 (Mendes, 2005)
Outputs Value of
production (000 €)
Direct use values Wood forest products 543,594 Non-wood forest goods 584,771 Recreational services 37,883 Total direct use values 1,166,248
Indirect use values Carbon storage 29,000 Protection of agricultural soil 49,209 Protection of water resources 28,934 Forest landscape and biodiversity conservation 56,695 Total indirect use values 163,863
Negative externalities Costs of fire prevention 17,350 Social costs of fire fighting 35,853 Losses of forest products burnt 38,320 Reforestation costs 45,327 Total negative externalities 136,850 TOTAL ECONOMIC VALUE 1,193,236
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 44
ImportanceImportance ofof NWFPsNWFPs inin 2001 2001 (Mendes, 2005)(Mendes, 2005)
TakenTaken as as anan aggregateaggregate, , thethe NWFPsNWFPs turnturn outout to to bebe thethe mainmain item item inin thethe Total Total EconomicEconomic ValueValue ofofforestforest productionproduction inin Continental Portugal Continental Portugal inin2001(2001(€584,8 €584,8 millionmillion))
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 55
ExamplesExamples ofof nonnon--woodwood forestforest goodsgoodsCorkCork
ResinResin
HoneyHoney
FruitsFruits ((PinePine nutsnuts, , ChestnutsChestnuts, , CarobCarob, , ArbutusArbutus berriesberries, , ElderberriesElderberries))
EdibleEdible mushroomsmushrooms pickedpicked for for salesale
PlantsPlants pickedpicked for for salesale
ForestForest goodsgoods for for intermediateintermediate consumptionconsumption inin animal animal productionproduction ((AcornsAcorns, , grazinggrazing resourcesresources underunder forestforestcovercover, , grazinggrazing resourcesresources inin scrubscrub landland))
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 66
ExamplesExamples ofof nonnon--woodwood forestforestgoodsgoods producedproduced inin corkcork oakoak standsstands
CorkCork
ForestForest goodsgoods for for intermediateintermediate consumptionconsumption ininanimal animal productionproduction ((AcornsAcorns, , grazinggrazing resourcesresourcesunderunder forestforest covercover))
HoneyHoney
FruitsFruits ((ArbutusArbutus berriesberries, , ElderberriesElderberries))
EdibleEdible mushroomsmushrooms pickedpicked for for salesale
PlantsPlants pickedpicked for for salesale
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 77
MainMain contributerscontributers to to thethe weightweight ofofNWFPsNWFPs onon TEV TEV ofof PortugusePortuguse
ForestsForestsCorkCork stands stands outout as as thethe mainmain contributorcontributor to to thetheTEV (€390,7 TEV (€390,7 millionmillion))
AcornsAcorns andand grazinggrazing formform thethe secondsecond major major elementelement (€112,4 (€112,4 millionmillion))
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 88
LocationLocation andand characteristicscharacteristics ofofcorkcork oakoak forestsforests
±
Source: IFN, 1995 (DGRF)
- Cork oak forests are present inmediterranean climates with atlanticinfluence;
- Cork oak forests have good developmentin deep, permeate and sandy soils;
- According to the NFI, in 1995 the areaof cork oak was about 713 000 ha;
- In 1995, cork oak was the 2nd forest specie, occupying an area of about22% of the total forest;
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 99
CorkCorkTheThe developmentdevelopment ofof thethe winewine sector sector andand thetheconsequentconsequent increaseincrease ofof thethe demanddemand for for corkcork to to produceproduce stoppersstoppers contributedcontributed to to thethe increaseincrease ofofthethe marketing marketing interestinterest for for corkcork whichwhich constitutesconstitutestodaytoday thethe mainmain economiceconomic valuevalue ofof thethe corkcork oakoakstands. stands.
Photo: D. Feliciano, May2006
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 1010
EvolutionEvolution ofof thethe corkcork oakoakforestsforests inin Portugal Portugal (Mendes, 2004)(Mendes, 2004)
712813
192000
0100000200000300000400000500000600000700000800000
1867 1902 1910 1920 1929 1939 1950-56
1963-66
1968-78
1980-85
1995-98
Years
Are
a (h
a)
Area (ha)
Source: Mendes (2004) Portuguese Forests
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 1111
CorkCork oakoak removalsremovals (Mendes, 2002)(Mendes, 2002)
Cork removals and exports
0
50000
100000
150000
200000
250000
300000
1865
1869
1873
1877
1881
1885
1889
1893
1897
1901
1905
1909
1913
1917
1921
1925
1929
1933
1937
1941
1945
1949
1953
1957
1961
1965
1969
1973
1977
1981
1985
1989
1993
1997
Years
tons
Removals Unprocessed and semiprocessed exports Total exports Processed exports
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 1212
EconomicEconomic valuevalue ofof corkcork inin 20012001(Mendes, 2005)(Mendes, 2005)
390,726390,726TotalTotal
14,79014,790493/t493/tRoadsiteRoadsitemarketmarket priceprice30,000 t30,000 tVirginVirgin corkcork
375,936375,9362,9372,937/t/tRoadsiteRoadsitemarketmarket priceprice128,000t128,000tReproductionReproduction
corkcork
ValueValue ofofproductionproduction
(000 (000 €)€)
UnitUnit valuevalue(euros (euros perper
physicalphysical unitunit))
ValuationValuationmethodmethod
(SICOP’s (SICOP’s leafletleaflet, 2003), 2003)
PhysicalPhysicalproductionproduction
((officialofficialagriculturalagriculturalstatisticsstatistics))
CorkCork
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 1313
ForestForest productsproducts for for intermediateintermediateconsumptionconsumption inin animal animal productionproduction
Photo: D. Feliciano, May 2006
-Acorns grazed by pigs in extensive rearing;-Grazing resources under forest cover;
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 1414
EconomicEconomic valuevalue ofof forestforest goodsgoods for for intermediateintermediateconsumptionconsumption inin animal animal productionproduction producedproduced inin
corkcork oakoak stands stands inin 2001 (Mendes, 2005)2001 (Mendes, 2005)
87,80987,809130.3/1000 130.3/1000 FUFU
SurrogateSurrogatemarketmarket priceprice
673,900,000 673,900,000 FUFU
GrazingGrazingresourcesresources
underunderforestforestcovercover
6,7046,704130.3/1000 130.3/1000 FUFU
SurrogateSurrogatemarketmarket priceprice
51,450,000 51,450,000 FUFUAccornsAccorns
ValueValue ofofproductionproduction
(000 (000 €)€)
UnitUnit valuevalue(euros (euros perper
physicalphysical unitunit))
ValuationValuationmethodmethod
PhysicalPhysicalproductionproduction
((intermediateintermediateoror final)final)
ForestForestgoodsgoods
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 1515
Acorns grazed by pigs in extensive rearing(1)
FirstFirst stepstep:: estimationestimation ofof thethe acornsacorns consumedconsumed (Moreira (Moreira etet alal., ., 1995)1995)
InIn 1989 1989 therethere werewere 6000 6000 sowssows;;
EachEach ofof thesethese animalsanimals givinggiving birthbirth to 10 to 10 sucklingsuckling pigspigs perperyearyear;;
8 8 outout ofof thesethese sucklingsuckling pigspigs gogo onon fatteningfattening upup to to thetheage age ofof 2 2 yearsyears;;
8 x 6000= 48,000 8 x 6000= 48,000 fatteningfattening pigspigs perper yearyear;;
1 1 pigpig needsneeds 1400 kg 1400 kg ofof acornsacorns;;
1400 kg x 48 000 1400 kg x 48 000 ≈ 70,000 t ≈ 70,000 t acornsacorns//yearyear grazedgrazed byby pigspigsinin extensiveextensive regime.regime.
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 1616
Acorns grazed by pigs in extensiverearing (2)
SecondSecond stepstep:: To To convertconvert thethe quantityquantity ofof acornsacornsgrazedgrazed byby pigspigs inin extensiveextensive regime regime intointo forageforageunitsunits (FU). (FU).
TheThe coefficientscoefficients proposedproposed byby Vieira da Vieira da Natividade (1950, p.317) are Natividade (1950, p.317) are takentaken as a as a basisbasis: : 730 FU/t for 730 FU/t for acornsacorns fromfrom corkcork oakoak andand 743 FU/t 743 FU/t for for acornsacorns fromfrom holmholm oakoak = = intermediateintermediate valuevalue735 FU/t;735 FU/t;
735FU/t x 70,000t/735FU/t x 70,000t/yearyear = 51,5 = 51,5 millionmillion FU/FU/yearyear
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 1717
Acorns grazed by pigs in extensiverearing (3)
ThirdThird stepstep: : To value this forest good, the priceof barley for animal consumption in 2001 (Instituto Nacional de Estatística, 2002) is usedas surrogate market price, assuming theequivalence 1 kg of barley = 1 FU.
Value of production (000 €) = 6,704
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 1818
Data Data collectioncollection: : DifficultiesDifficulties onon thethevaluationvaluation ofof nonnon--woodwood forestforest productsproducts
Data Data onon quantitiesquantities ofof NWFPsNWFPs are are usuallyusually lesslessreadilyreadily availableavailable thanthan for for WFPsWFPs;;
Some Some quantitiesquantities consumedconsumed for for subsistencesubsistence orortradedtraded onon informal informal marketsmarkets are are takentaken fromfromexpertexpert opinionopinion;;
Local Local marketsmarkets for for NWFPsNWFPs are are soso thinthin thatthat bothboththethe quantitiesquantities tradedtraded andand thethe associatedassociated pricespricesescape escape statisticsstatistics..
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 1919
Some Some remarksremarks
CorkCork isis thethe mainmain productproduct fromfrom “montado” “montado” withwith highhighimportanceimportance for for thethe TEV TEV ofof PortuguesePortuguese ForestsForests;;
TheThe valuevalue ofof acornsacorns andand grazinggrazing isis notnot includedincluded to to forestryforestry inin nationalnational accountsaccounts as as forestforest final final productionproduction, , sincesince theythey provideprovide intermediateintermediate consumptionconsumption for for livestocklivestock productionproduction;;
AlternativeAlternative productsproducts ((mushroomsmushrooms, , plantsplants) are ) are tradedtraded ininlocal local marketsmarkets andand thinthin marketsmarkets..
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 2020
PortuguesePortuguese “montado” “montado”
Some Some photosphotos
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 2121
NWFPsNWFPs -- HoneyHoney
Photo: D. Feliciano, May 2006
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NWFPsNWFPs -- PlantsPlants pickedpicked for for salesale
Photo: D. Feliciano, May 2006
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 2323
RecreationalRecreational servicesservices -- HuntingHunting
Photo: D. Feliciano, May 2006
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 2424
RecreationalRecreational servicesservices --Informal Informal forestforest recreationrecreation
Photo: D. Feliciano, May 2006
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 2525
IndirectIndirect use use valuesvalues-- BiodiversityBiodiversity
Photo: D. Feliciano, May 2006
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 2626
IndirectIndirect use use valuesvalues -- ForestForestlandscapelandscape
Photo: D. Feliciano, May 2006
0707--0101--0606 Américo Mendes & Diana FelicianoAmérico Mendes & Diana Feliciano 2727
MUCHAS GRACIASMUCHAS GRACIAS
MERCI BEAUCOUPMERCI BEAUCOUP
THANK YOUTHANK [email protected]@porto.ucp.pt
[email protected]@porto.ucp.pt