Incorporating Non-market Values into the Accounting Systems of Publicly and Privately-owned Forest Enterprises: an Operative Stepwise Approach : Non-Market Benefits of Forestry

London

1999

S. 341-372

Bandaufführung

85941

This paper shows that financial accounting is mainly used in large private forest enterprises (e.g. Austria, Germany, Finland) and also in public forest estates. Sometimes, const-centre accounting is also implemented. Almost no accounts for forestry activities are kept in farm accounting systems (e.g. EU-FADN). Meanwhile, 'parliamentary' accounts apply to public forests in several countries. Without adaptation, these accounts are not particularly useful for management decision-making. In any case, little attention is paid to 'environmental accounting', which is a fairly new concept, or even to separating expenditures for stewardship practices like landscape and environmental maintenance from timber production. The paper will propose a framework to improve forest accounting including environmental non-market values. Several options can be advanced which represent progressive steps: (i) identification of direct environmental expenditures; (ii) addition of hidden environmental liabilities/assets together with the imputed and/or the opportunity costs to provide environmental goods and services; (iii) consideration of non-market goods and services, valued also through consumer surplus measures. The steps for environmental accounting should be reflected in both the balance sheets and the profit and loss accounts, though the most advanced steps can be shown by 'satellite' accounts and/or addenda rather than being integrated into the traditional accounting system. In this context the valuation of forest assets, including natural resources stock, should be linked to forest inventories, extended to cover factors such as biodiversity and landscape qualities. The conclusions of the paper show how a functioning system of environmental accounts at forest level can become an instrument for the marketing of 'non-market' goods and services. Additionally, it can assist the design of public forest measures, such as incentives and compensation, which do not give undue consumers' or producers' rents. The appendix to the paper shows examples of the approach from a public forest in Northern Italy and a private forest enterprise in Austria.