Market and nonmarket values of the Georgia landscape

Abstract

Natural landscapes produce goods and services, such as fish, wildlife, recreation, climate control, that are not adequately incorporated in their market values. Contingent Valuation (CV) and Energy Analysis (EA) approaches were used to estimate the nonmarket value of forests in Georgia. Both methods yielded similar estimates of approximately $200 ha−1, which was 31% of the total market and nonmarket value of forests. Energy analysis was also used to estimate the nonmarket value of the major land uses in Georgia. Relative contributions of nonmarket value to total value ranged from 0.1% for urban areas to approximately 100% for wetlands. For the state as a whole, nonmarket production of natural and developed ecosystems was estimated at $2.6 billion. This value is comparable to annual marketed agricultural ($2.8 billion) and timber ($4.5 billion) production, both very important industries in Georgia. Changing land use patterns in Georgia and elsewhere are likely to be accompanied by shifts in the relative importances of market and non-market values.