Commercial And Non-Commercial Values Of Rainforests Analysis

778 Words 4 Pages
Rainforests are a source of various commodities such as timber and non-timber products, but also have an ecological and social aspects as carbon storage or recreation land. While the private sector plays an important role in managing the forests due to the 'demand-offer ' market rules, communities, such as people living in the region, lack the opportunity for decision-making. Despite the various initiatives of governments and non-governmental agencies the difference between the market and non-market values has not been yet clearly recognised and the rapid deforestation continues. This essay will discuss the commercial and non-commercial values of rainforests, communities impact on its declination, environmental importance and diverse solutions …show more content…
This arrangement enable to treat natural resources as inexhaustible and estimate the commodities values only on bases of expenses and profit. Although the awareness of timber consumers about forest degradation has arisen over the last decades, the difficulty of recognising 'hidden ' non-market values, known as 'the invisible elbow ' (Open University, 2015a), complicates to judge the products price accuracy. Carbon sequestration is the most important of the non-commercial values, because of the Earth climate change, but its evaluation range is obscure and vary from US$ 5 to US$ 50 per tonne according to different authors (The Open University, 2015b). Soil erosion and irrigation, biodiversity or scenic beauty are additional benefits that are problematic to evaluate in money. However, hesitation about the non-market benefit values seems advantageous to the private sector and encourages the forest degradation as these are not considered fully in the final product …show more content…
Nevertheless the world Bank Forestry Policy states that 'high private discount rates, particularly among the poor populations that depend on forests, are the cause of deforestation ' (The Open University, 2015c). There is an empirical evidence that poor people are more likely to deforest in higher rate and to do that borrow in informal markets with high interest rates. (The Open University, 2015d). On the other hand, according to World Bank examination (The Open University, 2015e), the link between poverty and high level of deforestation might vary as some society used forest management that sustain them for centuries. For example According to the Open University (2015f) the Aliança de Povos da Floresta (Alliance of Forest People), indigenous population of the Amazon rainforests, offered their support as forest guardians to REDD (countries that succeed in reducing their emissions from deforestation and forest

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