Development of the estimation methodology for the commercial balance of the market of social and environmental services of forests

Suska Anastasiy ()
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Suska Anastasiy: Kharkiv Petro Vasylenko National Technical University of Agriculture

Technology audit and production reserves, 6(38) 2017, 2017, vol. 6, issue 5(38), 20-24

Abstract: The perspective direction of the development of the economic space of the forest sector is the capitalization of the social and ecological potential of the forest, it makes it necessary to form new ecological systems for the forestry of Ukraine. In particular, the market of social and environmental services of the forest, the object of which is a special commodity is the social and environmental service. It is shown that the opportunities for establishment of the market for social and ecological forest services are determined by the quantitative and qualitative characteristics of the socio-ecological potential: the level of forest cover, the natural structure of the forest. And also by the magnitude and direction of the demand for the socio-ecological benefits of forests in these or other ethno-natural and economic territories. The ratio of these components is defined as the commercial balance of the market. This raises the need to develop a methodology for evaluation of the commercial balance of the market, which would allow to determine and forecast the opportunities for capitalizing the social and environmental potential of the forest in terms of volume and range, depending on the natural and economic environment of the territories. The proposed methodology for evaluation of the social and economic potential of forests in the context of the formation of the market for social and environmental services unites three consecutive stages: – identification of environmental problems and social needs of the territories where the project is planned to establish a market for social and environmental services of the forest, the level of their importance and danger; – evaluation of the wooded areas that can determine the volume and quality and structure of forests (tree species, age), which can determine the range of services; – analysis of the marketing environment that allows to determine the possible volume and direction of demand. Practical application of the methodology will make it possible to determine the opportunities and prospects for capitalizing the social and environmental benefits of forests in certain ethno-prodigal and economic areas, that is, with the opportunities and prospects for the formation and functioning of the market for social and ecological forest services.

Keywords: social and ecological potential; market of social and ecological services; commercial balance of the market; natural zones; optimal forest cover (search for similar items in EconPapers)
JEL-codes: L73 (search for similar items in EconPapers)
Date: 2017
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