Towards Estimating Total Economic Value of Forests in Mexico

Organisation:
University College London (UCL), agribusiness, sectoral agreements

This study demonstrates the economic techniques for estimating the Total Economic Value (TEV) of forests. For the Mexican forest estate, the results show an annual lower bound value of the services of the total forest area to be in the order of $4 billion. This aggregate value stems largely from the functional values of hydrological and carbon cycling, as well as from the non-marketed services provided by non-consumptive use, future potential uses of the genetic resources, and pure existence values. However, only a proportion of this value can be feasibly captured within Mexico, as much of the benefit of Mexico's forests falls outside of the country's borders and is therefore not considered by forest users or national policy makers.

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