Estimating Timber Depreciation in the Brazilian Amazon

Organisation:
Food and Agriculture Organization of the United Nations (FAO)
This case study applies forest accounting approaches to estimate economic depreciation of timber exploitation in the Amazonian region. High timber stocks, lack of property rights, and informal economic relations are issues related to the Amazonian case that require great deal of caution when one is applying economic depreciation methodologies.
 
Taking into account all timber depreciation measures, the results indicate that depreciation charges against the forestry sector as a whole in the Amazon lacks sound economic meaning and will not bring about the sustainability issue of the forest. Charges related to other forest services are, therefore, a paramount to make environmental accounting a useful tool for planning in the Amazonian context. 
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