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Ecosystem services valuation,
Profitability of timber-based agroforestry systems-
Environment outputs
01-03-2024 1
Dept. FRM
Ecosystem service valuation methods
Revealed-preference approaches
Market methods: Valuations are directly obtained from what people must be willing to pay for the service or
good (e.g., timber harvest).
Travel cost: Valuations of site-based amenities are implied by the costs people incur to enjoy them (e.g.,
cleaner recreational lakes).
Hedonic methods: The value of a service is implied by what people will be willing to pay for the service
through purchases in related markets, such as housing markets (e.g., open space amenities).
Production approaches: Service values are assigned from the impacts of those services on economic outputs
(e.g., increased shrimp yields from an increased area of wetlands).

01-03-2024 2
Cost-based approaches
Replacement cost: The loss of a natural system service is evaluated in terms of what it would cost to replace that
service (e.g., tertiary treatment values of wetlands if the cost of replacement is less than the value society places on
tertiary treatment).
Avoidance cost: A service is valued on the basis of costs avoided, or of the extent to which it allows the avoidance
of costly averting behaviors, including mitigation (e.g., clean water reduces costly incidents of diarrhea).
Benefit transfer: The adaptation of existing ESV information or data to new policy contexts that have little or no
data (e.g., ecosystem service values obtained by tourists viewing wildlife in one park used to estimate that from
viewing wildlife in a different park)
01-03-2024 3
Dept. FRM
SEEA Central Framework
It is based on international agreed concepts , definitions on environmental economic accounting that
allows the integration of statistics on environment and economy
The concepts and definitions are designed to be applicable across all countries, regardless of their level of
economic and statistic development their economic structure or composition of environment
01-03-2024 4
• Adopted: 2021 by UN statistic commission
• Organizing data about habitats landscapes, measuring ecosystem services and
tracking changes in ecosystem assets and linking this information to economic and
other human activity
SEEA Ecosystem accounting
• Acts as bridge between compiler and analysts and helps implementation of SEEA
• Presents various approaches that could be adopted and describe ways in which
SEEA can be used to inform analysis
SEEA Applications and extensions
Dept. FRM
 The SEEA subsystems :
 It build on the central framework while maintaining close links with the concepts and
terminology of the specific subjects' areas
 While part of the framework for water statistics was already adopted in 2007, the finalization of
the framework for agriculture and energy started in 2012.
01-03-2024 5
SEEA
subsystems
SEEA water Supports water policy design and evaluation
SEEA Energy informs on progress across the full spectrum of
energy related matter.
SEEA Agriculture Forestry and Fisheries covers all agricultural,
forestry and fishing activities and their sustainability
Dept. FRM
SEEA-AFF
 Agriculture is interpreted broadly as all
activities related to crops, livestock, forestry
and fisheries with a primary and intensive
use of environmental goods and services.
 Policy questions for which the SEEA AFF
provides information
01-03-2024 6
What mix of
production takes
place across the
agricultural
activities (Crops,
forestry, livestock
and fishing)
What demands
does this
production places
on environmental
stocks and flows
Is domestic
agriculture
production
sufficient to meet
local needs for
food and fiber ?
How safe
sustainable is our
food production
and what policy
decision could
enhance
production and
rural income?
Dept. FRM
Profitability of timber-based agroforestry systems -Costs and benefits in
agroforestry
01-03-2024 7
Dept. FRM
Species Selection: Some trees have faster growth rates and higher market value than others.
Fast-growing species can yield timber more quickly, potentially increasing short-term profitability
Market Demand: High demand for specific timber species in local or international markets can positively impact
profitability.
Land Productivity: Soil quality, climate, and topography play a significant role in the success of agroforestry systems
Certification and
Sustainable Practices
Adopting sustainable and certified forestry practices can enhance the marketability of timber
products and potentially attract premium prices from environmentally conscious consumers.
Management Practices proper spacing, pruning, and fertilization, can enhance timber growth and overall productivity.
Risk Management Assess and manage risks such as pest and disease outbreaks, natural disasters, and market
volatility.
01-03-2024 8
Cropping Systems
Total Production Cost
(Tk/ha)
Gross return
(Tk/ha)
Net profit
(Tk/ha)
BCR
Akashmoni-Ginger-Banana
Agroforestry 138350 506883 368533 3.66
NAFs 137630 402584 264954 2.92
Akashmoni-Turmeric-Banana
Agroforestry 126052 358997 232945 2.88
NAFs 119265 281132 161867 2.36
Akashmoni-Acacia hybrid-Gamar-
Ghoraneem-Turmeric
Agroforestry 97950 230541 132591 2.35
NAFs 58975 117843 58868 1.99
Jackfruit-Akashmoni-Turmeric-Aroid
Agroforestry 95153 212071 116918 2.23
NAFs 82475 161309 78834 1.95
Litchi-Pineapple-Papaya-Ginger-Banana
Agroforestry 180958 592913 411955 3.28
NAFs 178560 535108 356548 2.99
Economic performances of different cropping systems
Akashmoni –Acacia auriculiformis
Effect of different cropping systems on soil properties
Cropping Systems
pH OM (%) Total N
(%)
P (ppm) K(meq/
100g)
Akashmoni-Ginger-Banana
Agroforestry 4.77 2.69 0.16 42.74 0.32
NAFs 4.71 2.43 0.13 15.54 0.29
Akashmoni-Turmeric-Banana
Agroforestry 4.38 2.60 0.15 33.89 0.29
NAFs 4.86 2.01 0.10 21.40 0.26
Akashmoni-Acacia hybrid-Gamar-
Ghoraneem-Turmeric
Agroforestry 4.77 2.58 0.15 30.89 0.27
NAFs 4.56 2.35 0.11 19.01 0.19
Jackfruit- Akashmoni- Turmeric-Aroid
Agroforestry 4.75 2.55 0.15 23.01 0.24
NAFs 4.72 2.46 0.14 22.99 0.18
Litchi-Pineapple-Papaya-Ginger-Banana
Agroforestry 4.58 2.52 0.14 32.00 0.31
NAFs 4.76 2.24 0.12 29.87 0.28
01-03-2024 9
Productivity analysis of timber and fruit tree-based agroforestry practices in Madhupur Sal forest, Bangladesh
Agroforestry systems– Environment outputs
 Soil health improves by Agroforestry:
 Tree roots - quality of water absorption, beneficial microorganism, -richness of soil nutrients,
 AFS gift to environment to improve polluted land, decrease soil salinization, and acidification (Murthy et al. 2013)
 Physico-chemical properties of soil organic carbon and soil pH were significantly increasing (Sharma et al. 2019)
 Agroforestry to check atmospheric CO2:
 Forest is estimated as 7,204 million tonnes - 529.47 million tonnes of carbon stock in plantation/ Trees Outside
Fores (FSI, 2021).
 Carbon sequestration per year estimated between 0.5 – 20 and 0.01 to 0.50 mg. carbon per hectare for the
combination of tree cover and crop component, respectively,
 Recover fossil fuels and source of fuel wood through Agroforestry:
 The plantation of trees in the local field with agricultural crop generally fulfill the demand and produce more
quantity of the fuel wood, which acts as significantly reduces the reliance on fossil fuels of the people (Smith 2010).
01-03-2024 10
Dept. FRM
 Agroforestry enhanced air quality:
 Windbreaks and shelterbelts promote air quality and reduce pollution
 Reduce wind chills, erosion
 Particulate matter in the air
 Remove atmospheric carbon dioxide and improve oxygen circulation
 Provide additional habitats for wildlife, protect crops
 Reduce wind velocity, reduce noise pollution and livestock odor (Tyndall and Colletti 2011).
 Agroforestry maintain microclimate:
 Reduces temperature of the soil 2 to 5 °C,
 Humidity increase about 5 to 10 percent inside the tea-based agroforestry combination in the shaded areas.
 Agroforestry as Artistic and Traditions:
 Conventional agroforestry system like home gardens was an art for a long time
 It provides basic needs as well as aesthetic value and ornamental scene of the areas
 Increasing value of nature should maintain the orchard, kitchen garden, pasture lands, tree lots, and home
gardens where an area of more landscapes (McAdam and Mosquera 2019).
01-03-2024 11
Dept. FRM
 Agroforestry used as biofertilizer:
 Decomposition of litter in tropical areas was higher in comparison to temperate areas of the plantation -
presence of sunlight
 Higher rate of decomposition in sub-surface soil in comparison to surface soil by the Ficus benghalensis
based agroforestry.
 Conclusion
 The maximum species diversity, multi-storied composition, and develops native plants to conserve the
environment and richness of diversity.
 On the other hand, it is significant to message that the impacts of agroforestry are reliant on diverse
aspects at different geographical on the different amount for agroforestry systems.
01-03-2024 12
Dept. FRM
Dept. FRM
01-03-2024 13

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Valuing ecosystem services, profitability of timber based.pdf

  • 1. Ecosystem services valuation, Profitability of timber-based agroforestry systems- Environment outputs 01-03-2024 1 Dept. FRM
  • 2. Ecosystem service valuation methods Revealed-preference approaches Market methods: Valuations are directly obtained from what people must be willing to pay for the service or good (e.g., timber harvest). Travel cost: Valuations of site-based amenities are implied by the costs people incur to enjoy them (e.g., cleaner recreational lakes). Hedonic methods: The value of a service is implied by what people will be willing to pay for the service through purchases in related markets, such as housing markets (e.g., open space amenities). Production approaches: Service values are assigned from the impacts of those services on economic outputs (e.g., increased shrimp yields from an increased area of wetlands).  01-03-2024 2
  • 3. Cost-based approaches Replacement cost: The loss of a natural system service is evaluated in terms of what it would cost to replace that service (e.g., tertiary treatment values of wetlands if the cost of replacement is less than the value society places on tertiary treatment). Avoidance cost: A service is valued on the basis of costs avoided, or of the extent to which it allows the avoidance of costly averting behaviors, including mitigation (e.g., clean water reduces costly incidents of diarrhea). Benefit transfer: The adaptation of existing ESV information or data to new policy contexts that have little or no data (e.g., ecosystem service values obtained by tourists viewing wildlife in one park used to estimate that from viewing wildlife in a different park) 01-03-2024 3 Dept. FRM
  • 4. SEEA Central Framework It is based on international agreed concepts , definitions on environmental economic accounting that allows the integration of statistics on environment and economy The concepts and definitions are designed to be applicable across all countries, regardless of their level of economic and statistic development their economic structure or composition of environment 01-03-2024 4 • Adopted: 2021 by UN statistic commission • Organizing data about habitats landscapes, measuring ecosystem services and tracking changes in ecosystem assets and linking this information to economic and other human activity SEEA Ecosystem accounting • Acts as bridge between compiler and analysts and helps implementation of SEEA • Presents various approaches that could be adopted and describe ways in which SEEA can be used to inform analysis SEEA Applications and extensions Dept. FRM
  • 5.  The SEEA subsystems :  It build on the central framework while maintaining close links with the concepts and terminology of the specific subjects' areas  While part of the framework for water statistics was already adopted in 2007, the finalization of the framework for agriculture and energy started in 2012. 01-03-2024 5 SEEA subsystems SEEA water Supports water policy design and evaluation SEEA Energy informs on progress across the full spectrum of energy related matter. SEEA Agriculture Forestry and Fisheries covers all agricultural, forestry and fishing activities and their sustainability Dept. FRM
  • 6. SEEA-AFF  Agriculture is interpreted broadly as all activities related to crops, livestock, forestry and fisheries with a primary and intensive use of environmental goods and services.  Policy questions for which the SEEA AFF provides information 01-03-2024 6 What mix of production takes place across the agricultural activities (Crops, forestry, livestock and fishing) What demands does this production places on environmental stocks and flows Is domestic agriculture production sufficient to meet local needs for food and fiber ? How safe sustainable is our food production and what policy decision could enhance production and rural income? Dept. FRM
  • 7. Profitability of timber-based agroforestry systems -Costs and benefits in agroforestry 01-03-2024 7 Dept. FRM Species Selection: Some trees have faster growth rates and higher market value than others. Fast-growing species can yield timber more quickly, potentially increasing short-term profitability Market Demand: High demand for specific timber species in local or international markets can positively impact profitability. Land Productivity: Soil quality, climate, and topography play a significant role in the success of agroforestry systems Certification and Sustainable Practices Adopting sustainable and certified forestry practices can enhance the marketability of timber products and potentially attract premium prices from environmentally conscious consumers. Management Practices proper spacing, pruning, and fertilization, can enhance timber growth and overall productivity. Risk Management Assess and manage risks such as pest and disease outbreaks, natural disasters, and market volatility.
  • 8. 01-03-2024 8 Cropping Systems Total Production Cost (Tk/ha) Gross return (Tk/ha) Net profit (Tk/ha) BCR Akashmoni-Ginger-Banana Agroforestry 138350 506883 368533 3.66 NAFs 137630 402584 264954 2.92 Akashmoni-Turmeric-Banana Agroforestry 126052 358997 232945 2.88 NAFs 119265 281132 161867 2.36 Akashmoni-Acacia hybrid-Gamar- Ghoraneem-Turmeric Agroforestry 97950 230541 132591 2.35 NAFs 58975 117843 58868 1.99 Jackfruit-Akashmoni-Turmeric-Aroid Agroforestry 95153 212071 116918 2.23 NAFs 82475 161309 78834 1.95 Litchi-Pineapple-Papaya-Ginger-Banana Agroforestry 180958 592913 411955 3.28 NAFs 178560 535108 356548 2.99 Economic performances of different cropping systems Akashmoni –Acacia auriculiformis
  • 9. Effect of different cropping systems on soil properties Cropping Systems pH OM (%) Total N (%) P (ppm) K(meq/ 100g) Akashmoni-Ginger-Banana Agroforestry 4.77 2.69 0.16 42.74 0.32 NAFs 4.71 2.43 0.13 15.54 0.29 Akashmoni-Turmeric-Banana Agroforestry 4.38 2.60 0.15 33.89 0.29 NAFs 4.86 2.01 0.10 21.40 0.26 Akashmoni-Acacia hybrid-Gamar- Ghoraneem-Turmeric Agroforestry 4.77 2.58 0.15 30.89 0.27 NAFs 4.56 2.35 0.11 19.01 0.19 Jackfruit- Akashmoni- Turmeric-Aroid Agroforestry 4.75 2.55 0.15 23.01 0.24 NAFs 4.72 2.46 0.14 22.99 0.18 Litchi-Pineapple-Papaya-Ginger-Banana Agroforestry 4.58 2.52 0.14 32.00 0.31 NAFs 4.76 2.24 0.12 29.87 0.28 01-03-2024 9 Productivity analysis of timber and fruit tree-based agroforestry practices in Madhupur Sal forest, Bangladesh
  • 10. Agroforestry systems– Environment outputs  Soil health improves by Agroforestry:  Tree roots - quality of water absorption, beneficial microorganism, -richness of soil nutrients,  AFS gift to environment to improve polluted land, decrease soil salinization, and acidification (Murthy et al. 2013)  Physico-chemical properties of soil organic carbon and soil pH were significantly increasing (Sharma et al. 2019)  Agroforestry to check atmospheric CO2:  Forest is estimated as 7,204 million tonnes - 529.47 million tonnes of carbon stock in plantation/ Trees Outside Fores (FSI, 2021).  Carbon sequestration per year estimated between 0.5 – 20 and 0.01 to 0.50 mg. carbon per hectare for the combination of tree cover and crop component, respectively,  Recover fossil fuels and source of fuel wood through Agroforestry:  The plantation of trees in the local field with agricultural crop generally fulfill the demand and produce more quantity of the fuel wood, which acts as significantly reduces the reliance on fossil fuels of the people (Smith 2010). 01-03-2024 10 Dept. FRM
  • 11.  Agroforestry enhanced air quality:  Windbreaks and shelterbelts promote air quality and reduce pollution  Reduce wind chills, erosion  Particulate matter in the air  Remove atmospheric carbon dioxide and improve oxygen circulation  Provide additional habitats for wildlife, protect crops  Reduce wind velocity, reduce noise pollution and livestock odor (Tyndall and Colletti 2011).  Agroforestry maintain microclimate:  Reduces temperature of the soil 2 to 5 °C,  Humidity increase about 5 to 10 percent inside the tea-based agroforestry combination in the shaded areas.  Agroforestry as Artistic and Traditions:  Conventional agroforestry system like home gardens was an art for a long time  It provides basic needs as well as aesthetic value and ornamental scene of the areas  Increasing value of nature should maintain the orchard, kitchen garden, pasture lands, tree lots, and home gardens where an area of more landscapes (McAdam and Mosquera 2019). 01-03-2024 11 Dept. FRM
  • 12.  Agroforestry used as biofertilizer:  Decomposition of litter in tropical areas was higher in comparison to temperate areas of the plantation - presence of sunlight  Higher rate of decomposition in sub-surface soil in comparison to surface soil by the Ficus benghalensis based agroforestry.  Conclusion  The maximum species diversity, multi-storied composition, and develops native plants to conserve the environment and richness of diversity.  On the other hand, it is significant to message that the impacts of agroforestry are reliant on diverse aspects at different geographical on the different amount for agroforestry systems. 01-03-2024 12 Dept. FRM