Many forest goods and services are not marketed. Methods for assessing these values are incomplete, and so is an understanding of who benefits from them. Forest owners are not rewarded for the value of these externalities and may make decisions providing less externalities than optimal. We can increase welfare, if we develop ways to enhance their provision. The objectives of NEWFOREX are: 1: To provide methods for valuing forest externalities, which handle the jointly produced externalities in an integrated way. Specific attention will be given to the question: Who benefits? This is important as it is among the beneficiaries that likely ‘buyers’ are to be found. 2: To develop a methodology for assessing the cost of provision for externalities. We take into account trans-boundary effects of forest management, and transactions and opportunity costs. 3: To assess several market-based methods for enhancing the provision of forest externalities, including e.g. payment schemes provision, certification or (re-)definition of property rights. A method for choice and design of market-based methods will be provided. Method: We will test methods and tools and undertake analytical, applied research on a set of empirical surveys among beneficiaries (buyers) and forest owners (providers). These will take place in 5 EU case studies and a developing country case study. They will focus on key externalities: Carbon sequestration, biodiversity protection, watershed services and recreation. The surveys will be designed to allow for comparative analyses and detailed results supporting the achievement of the objectives. Addressing the demand and supply side simultaneously is a unique and innovative stroke. Results: New and improved methods, comparative analyses and guidelines of great value will result. We communicate the gains in knowledge using seminars, popular articles, guidelines and best practice examples across Europe. An easy-access Guiding tool is compiled.
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