THE
                                      WILDERNESS
                                       SOCIETY
   Economic Value of
   Forest  Ecosystem Services:
   A Review
   By Douglas J. Krieger, Ph.D.
                 THEECONOMICVALUEOF
               FOREST ECOSYSTEM SERVICES:
                        A REVIEW
                      By Douglas J. Krieger, Ph.D.
                 an analysis prepared for The Wilderness Society
                                       CONTENTS                    Page i
         Acknowledgments...............................................................................................................................ii
         Executive Summary...........................................................................................................................iii
         Chapter 1. Ecosystem Services: Values and Valuation................................................................1
           Economic Value of Environmental Goods and Services...................................................1
           Measurement of Economic Values.........................................................................................2
             Valuation approaches and value measures.....................................................................4
         Chapter 2. The Value of Forest Ecosystem Goods and Services.............................................7
           Watershed Services....................................................................................................................7
             Water quantity....................................................................................................................9
             Water quality....................................................................................................................10
           Soil Stabilization and Erosion Control..............................................................................12
           Air Quality................................................................................................................................12
           Climate Regulation and Carbon Sequestration................................................................13
           Biological Diversity.................................................................................................................14
           Recreation and Tourism.........................................................................................................15
             General recreation............................................................................................................15
             Hunting and fishing........................................................................................................17
           Non-timber Commercial Forest Products.........................................................................20
           Cultural Values.........................................................................................................................21
             Aesthetic and passive use values of forests and wilderness....................................21
             Endangered species habitat............................................................................................23
             Cultural heritage values...................................................................................................23
         References..........................................................................................................................................26
         TWS Offices....................................................................................................................................31
         Figures
           Figure 1. Ecosystem service values of U.S. forests ............................................................iv
           Figure 2. Consumer surplus for a change in an ecosystem good or service .................3
         Tables
           Table 1. Range of estimated forest ecosystem service values by region.........................v
           Table 2. Estimate of forest ecosystem values......................................................................8
           Table 3. Water quantity service values of forests..............................................................11
           Table 4. Summary of water quality values of forests......................................................13
           Table 5. Summary of carbon sequestration values of forests.......................................15
           Table 6. Recreation and tourism values of forests....................................................19-20
           Table 7. Summary of cultural values of forests.........................................................24-25
                                               Economic Value of Forest Ecosystem Services: A Review
      Page ii                   ACKNOWLEDGMENTS
                           Cindy De Grood, Research Analyst in The Wilderness Society’s Ecology and Economics
                           Research Department (EERD), conducted preliminary research for this report. EERD
                           Resource Economist Carolyn Alkire reviewed the report and made helpful suggestions
                           with assistance from colleagues Spencer Phillips and Pete Morton.
                           Research for this report was supported by a grant from the Alex C. Walker Educational
                           and Charitable Foundation.
                           March 2001
                           The Wilderness Society
                           1615 M Street, NW
                           Washington, D.C. 20036
                           Phone: 202-833-2300
                           Fax: 202-429-3945
                           Cover Photo by Charlie Orr, “Big Trees, California”
                           Editor: Deanne Kloepfer
                           Designer: Mitchelle Stephenson
      Economic Value of Forest Ecosystem Services: A Review