Environmental and Resource Economics

, Volume 26, Issue 2, pp 173–198

An Operative Framework for Total Hicksian Income Measurement: Application to a Multiple-Use Forest

Authors

  • Alejandro Caparrós
    • Centre International de Recherche sur l'Environnement et le Développement (CIRED)
  • Pablo Campos
    • Consejo Superior de Investigaciones Científicas (IEG-CSIC)Instituto de Economía y Geografía
  • Gregorio Montero
    • Centro de Investigación ForestalInstituto Nacional de Investigación y Tecnología Agraria y Alimentaria (CIFOR-INIA)
Article

DOI: 10.1023/A:1026306832349

Cite this article as:
Caparrós, A., Campos, P. & Montero, G. Environmental and Resource Economics (2003) 26: 173. doi:10.1023/A:1026306832349

Abstract

A methodology for estimating total hicksian income in multiple-use forests is presented. The approach consistently incorporates commercial as well as non-commercial economic values and enables the measurement of national accounting aggregates taking into account variation in man-made and natural capital. Innovative solutions are developed (i) for the estimation of non-market values, such as recreation, where an attempt to determine exchange values has been made simulating markets, (ii) for timber, where standing timber valuation methods have been extended to cover uneven stands, and (iii) for carbon fixation valuation, where only permanently fixed carbon after 1990 has been taken into account. The methodology is applied to a multiple-use pinewood in the Guadarrama mountains, near Madrid (Spain). Timber, cattle grazing, hunting, recreation, carbon fixation and conservation values are measured and integrated in the accounting system, using primary microeconomic data from the case study. Results indicate the importance of non-commercial income, which accounts for 51% of the total income, and the social relevance of the analysed forest, implying that only 31% of the total income generated is appropriated by the forest owner.

contingent valuationexchange valuesgreen national accountinghicksian income

Copyright information

© Kluwer Academic Publishers 2003