Emerging Markets for Forest Services and Implications for Rural Development, Forest Industry and GovernmentBy David Brand - Hancock Timber Resources Group View Publication
The transition from a commodity-based to a service-based economy is underway in forestry as
well as other sectors. Some timber prices are declining, while the value of forests for
environmental services increase in relation to disaster prevention and mitigation, protecting
biodiversity, and promoting ecosystem health. Payments for environmental services, such as
carbon or transpiration, can make forest investments much more attractive financially. Eventually we will conceive of forestry investments as a type of environmental infrastructure similar to hospitals, which derive their cash flow from a mix of products.