ABSTRACT

This chapter considers the use of choice experiments to value services of forest ecosystems that are not traded in markets and conditions that might be marketed but have not been experienced in the market. A choice experiment is a survey-based valuation method in which the unique focus is the estimation of marginal values for individual elements of forest ecosystems. We begin with an explanation of the state of the art in choice experiments and then discuss common types of forest ecosystem applications from around the globe. The application of choice experiments to forestry issues has grown rapidly in recent years, and we anticipate continued growth. Concurrent with this growth in applications, there have been substantial enhancements in the design of choice questions and the econometric analysis of the choice data. Future forestry applications should search for the best procedures in study design and data analysis when implementing studies. Overall, choice modeling has provided forest decision makers in both the public and private sectors with richer information on economic values to enhance the quality and sustainability of forests at the local, national and global levels.