The economic value of old growth trees in Israel

a r t i c l e i n f o JEL classification: Q23 Q51 Q57 Keywords: Old trees Old growth Non-use value Existence value Contingent Valuation Israel We estimated the annual value of old growth trees in Israel using a Contingent Valuation (CV) study. We used the payment card (PC) procedure and surveyed both forest visitors as well as a representative sample of the general population. It was found out that the annual value can range between 2.35 and 19.9 million Euros depending on the assumption with respect to who are the beneficiaries of the project. This value is important since old growth trees are used less for active recreation but has an important role in the heritage of the country. As such they should be allocated funds to be preserved. This paper tries to understand the value of this commodity from an economic point of view in order to conclude if it deserves the financial effort needed to be preserved. Like many forest landscapes in semi-arid regions of the Mediter-ranean basin, Israel forests occur in patchworks of varying densities and attributes. They are also subject to pressure from a variety of stakeholder uses, especially, development (Croitoru, 2007). While valuation of Mediterranean forest resources is fairly common, for recreation, timber and non-wood products, the value of rare and unique assets, such as traditional landscapes and old growth has received relatively little attention. This presents a challenge to policy-makers, planners and others concerned with the preservation of these assets because, the conservation of ancient woodlands and old trees generally requires special measures. They are more vulnerable to one of the major threats to the region's forests, fire and are irreplaceable within conventional planning time-horizons. Planners concerned with efficient resource allocation must consider the trade-offs between development, conservation and other uses of the forest together with the costs of management programmes (Montgomery et al., 2006). Without adequate valuation that covers all relevant assets and benefit categories, the efficiency of policies cannot be accurately assessed. Unlike many forests elsewhere in the region, Israeli forests are relatively new. Most were planted since 1911 under the auspices of national forest service. The planted forests tend to be dominated by a few relatively quick growing species with an emphasis on tall trees that provide recreation space in addition to watershed and soil conservation functions. In recent years, planning has shifted somewhat towards a more varied …