Course code MežZ6012

Credit points 3

Forest Value

Total Hours in Course81

Number of hours for lectures12

Number of hours for seminars and practical classes12

Independent study hours57

Date of course confirmation30.03.2021

Responsible UnitInstitute of Forest Management

Course developer

author reserch

Dagnis Dubrovskis

Dr. silv.

Course abstract

Forest value included social, economical and ecological functions and goods. Definition of sustainable forestry means balanced output of forest functions and goods. Value of forest resources must be valuated physically and monetary. Subject of Forest valuation includes Forest valuation methods which has been developed for valuation of goods and services.

Learning outcomes and their assessment

The aim of the course is to learn the methods used to assess forests to successfully use them in forest management.
• knowledge - understanding the ecological, economic and social functions and values of forests; tests, contr., 1 workshop
• skills - using different forest valuation methods, calculating forest value tests, contr., 1 workshop
• Competencies - have acquired forest evaluation computer programs and tools, data mining method value test, quiz

Course Content(Calendar)

1. Economic value of forests, general terms, structure. Forest products and services;1h
2. Criteria and indicators for characterising forest values. Monetary and quantitative valuation of biological assets; 1h
3. The assessment facility and the general characteristics of the evaluation methods. Methods for determining the market value of forests. Integrated system for the identification of environmental and economic values; 1h
4. Capital valuation theory, financial math frameworks, the concept and meaning of interest rate, the methods for calculating net income (annuities); 1h
5. Price formation mechanism for the product and service. Methods for evaluating forest products and services; 1h
6. Methods of valuation of transactions, their use in the valuation of forest resources, methods for calculating the atumpage price; 1h
7. Method of analysis of discounted income (Faustman formula); 1h
8. Method of capitalisation of direct costs (Ostvalda formula); 1h
9. The problem of forest land valuation; 1h
10. Differences in the valuation of an individual tree and forest stand; 1h
11. The cadastral value of the land, its determination; 1h
14. Contingent method (CONTINGENT VALUATION METOD — CVM). 1h

Practical works have been developed.
1. Interest rate concept, discounting and compositioning; 2h
2. Calculation of growing tree strain money (Assessment of the felling area); 2h
3. Method of analysis of discounted income (Faustman formula); 2h
4. Method of capitalisation of direct costs (Ostvalda formula); 2h
5. Calculation of the capital value of forest property (Example of property valuation) 2h

Requirements for awarding credit points

16 lectures, 2 workshops, 3 tests and 5 practical works, end-testing work (collikvie) - marking.

Description of the organization and tasks of students’ independent work

• Explore the sources of literature,
• watch documentaries available in e-studios
• watch equations visualization movies available in e-studios
• Prepare workshop presentations:
• Examples of practical evaluation of forest services
• Forest Value Calculation, Overseas Experience

Criteria for Evaluating Learning Outcomes

The final assessment shall consist of:
1 Practical Work Protocols developed and adopted 20%
2. Working in seminars, 20% defended presentations
3. Final test score 60%

Compulsory reading

1. Dubrovskis D. Meža ekonomiskās vērtības noteikšana. Lekciju kurss "Meža vērtība". 2011
2. Commision of the European Comunities. The European Framework for Integrated Envinronmental and Economic Accaunting for Forests - IEAF 2000. Office for Official Publica;
3. European Communities. Valuation of European forests - Results of IEEAF test applications. Office for Official Publications of the European Communities. 2000. 105 p.

Further reading

1. Klemperer W.D. Forest Resource Economics and Finance. New York: McGraw-Hill, 1996. 551 p. Series in Forest Resources.
2.Iesalnieks J. Meža ekonomikas pamati. Rīga: SIA ET Cetera, 2002. 91lpp.
3. Markuss R. Ostvald’s Relative Forest Rent Teory. Munchen: Bayerisher Landwirtshaftscverlung GmbH, 1967. 128 p.
4.Jonsson B., Jacobsson J., Kallur H. The forest Management Planinng Package Theory and application. SUA Sciences, Faculty of Forestry Upssala. Sweden, 1992. 57 p.

Periodicals and other sources

1. Forest Policy and Economics. Pieejams:
2 .Journal or Forest Economics. Pieejams:;
3 .Unasylva. Pieejams:


Study course for students of the master's study program of the Faculty of Forestry.