International Conference

 

BUILDING INSIGHTS OF MANAGERIAL ECONOMICS AND ACCOUNTING TOWARDS SUSTAINABLE FOREST MANAGEMENT

Ukrainian National Forestry University, Lviv, Ukraine

May 17 19, 2007

 

IUFRO Unit 4.05.00 - Managerial Economics and Accounting

IUFRO Unit 4.05.01 - Managerial, social and environmental accounting

IUFRO Unit 4.05.02 - Managerial economics

 

Evaluating Impacts of Forest Certification

 

Frederick Cubbage,  North Carolina State University, Raleigh, North Carolina, USA

E-mail: fredcubbage@yahoo.com

 

Ihor Soloviy,  Institute of Ecological Economics, Ukrainian National Forestry University, Lviv, Ukraine

E-mail: soloviy@yahoo.co.uk

 

Volodymyr Kovalyshyn, Institute of Ecological Economics, Ukrainian National Forestry University, Lviv, Ukraine

E-mail: vovik@forest.lviv.ua

 

 

Forest certification is increasing in extent and importance throughout the world, with about 295 million ha certified as of January 2007, or about 7.5% of the worlds forests. Certification is intended to ensure that forests are managed in an economically, environmentally, and socially desirable manner.  The two largest forest certification systems in the world are Forest Stewardship Council (FSC) and Programme for Endorsement of Forest Certification (PEFC).  FSC was the first international system, with 84 milion ha. It was begun and still promoted by environmental nongovernment organizations (ENGOs).  PEFC, with 194 million ha as of 2007, is actually an organization that approves individual country systems, which have been promulgated by private landowner, industry, and conservation interest groups.  Recent evaluation studies have found that forest certification does prompt changes in forest management, improve interaction with communities and workers, and enhance environmental performance.  Studies in Europe indicate that costs for certification may range from $0.15 to $1.50 per ha per year depending on the country and forest size; a U.S. study found costs to maintain certification that ranged from $0.80 to $9.50 per ha per year.  Forest certification adoption has been associated with export of forest products, forest area per capita, gross domestic product, and income per capita.  Forest certification will continue to increase moderately in area in the future, as well as lead the discussion about market mechanisms to foster sustainable forest management.

 

 

Keywords: forest policy instruments, forest certification systems, market mechanisms, sustainable forest management

 

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