Forests in Armenia provide significant economic and environmental benefits. They protect biodiversity, conserve water resources, and support tourism and beverage industries. However, Armenia has lost a large percentage of its forests over time. Quantitatively, the value of Armenia's forest ecosystem services ranges from $7 million to over $1.1 billion per year depending on the valuation method used. Conserving forests can save billions of dollars on infrastructure like water treatment plants and provides substantial natural capital compared to alternatives like gold mining. Redefining economic systems to account for natural capital like forests can significantly improve sustainability and economic outcomes.

2. Redefining Our Economic Systems:
Could A Forest Be Worth More
Than A Gold Mine?
Presented by Jason Sohigian @ TEDx Yerevan

3. Natural capital: Forests = green infrastructure

4. Forests protect Armenia’s rich biodiversity
Caucasian Leopard, Shikahogh Reserve in Syunik
Photo by A. Malkhasyan, I. Khorozyan, and M. Boyajyan
used w/permission of WWF Armenia

5. Forests conserve strategic water resources

6. Forest loss, drivers of deforestation
1,000 BC = 35+% 1998 = 12% 2008 = 8%

7. Balance sheet: What is a forest worth?
Min value ($/ha/year) Max value ($/ha/year) *
Provisioning services $25 $1,736
Regulating services $3 $456
Habitat services $0 $2,575
Cultural services $1 $96
Total value $30 per ha per yr $4,863 per ha per yr
* Source: Monetary value of ecosystem services provided by temperate forests,
The Economics of Ecosystems & Biodiversity (TEEB), United Nations
Environment Programme, 2010

8. …what is the value of Armenia’s forests?
From $7 million
per year…
…to up to $1.1
billion per year!
* Using TEEB’s low * Using TEEB’s high estimate
estimate of forest value of forest value

9. Tourism depends on “natural capital”

10. Beverage industry depends on “natural capital”

11. Armenia relies on hydro for 30% of its energy

12. Forest conservation can save billions of $$$
New water filtration
plant = $6 billion
Forest conservation in
watershed = $1.5 billion
Catskill Watershed New York City’s drinking water

13. Redefining our economic systems…

14. Thanks @TEDxers!
Image credits: AUA, Sarah Hayes, Hawk Khatcherian,
Jeff Masarjian, Jason Sohigian, UNDP, WWF Armenia
Learn more:
http://bankofnaturalcapital.com/
http://www.unep.org/greeneconomy/
http://www.wri.org/ecosystems/esr