What are forests worth?

Curtis NRA was a member and the convenor of a consortium including KPMG and SEMF Tasmania, to deliver the Tasmanian Forest Conservation Fund on behalf of (DEWHA) Australian Government in 2006-2007. The program was a market based incentive (MBI) program, by open tender (reverse auction), and was widely advertised and communicated to landowners in all of the 9 bioregions of Tasmania.

Results were initially suppressed, but have recently been made public by a joint private sector/Government presentation to the OECD. 28,900 hectares were secured under covenant, at a cost of $35 million. The gross median unimproved capital value (UCV) of land in all of the 9 bioregions in 2006-2007 was $2620/ha.The money paid by the Federal Government represents $1211 per hectare, or just over 46% of the UCV, which was very cost effective for Govt. However, the value of the ecological goods and services provided by the forested land secured, and protected, would be in the vicinity of AUD$5.45 million per annum ($189/ha/pa). This figure represents a net social benefit of 15.6% per annum to the taxpayers of Australia, or nearly three times the average 10YR Australian Government Bond Rate.

Leave a Reply

Your email address will not be published. Required fields are marked *

* Copy This Password *

* Type Or Paste Password Here *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>