The financing of non-market forest services

Abstract

The article deals with issues of non-market forest services. There is a persistent issue complicating the quantification of adequate subsidy to forest owners - non-existence of market with such forest services. Forest services financing can be made objective by implementation of the following steps: 1. Earmarking of non-market forest services that are becoming market subjects gradually. 2. Earmarking of non-market forest services that create a secondary product of wood production function. 3. Quantification of demand for services. 4. Quantification of costs necessary to cover the demand for those forest services. 5. Quantification of losses caused to forest owners by restricting their economic activities.