Development of a Project Proposal for the Economic Valuation of Production Forests and Agroforestry System in the Peruvian Amazon

Peru

The objective of this pre-project was to develop a project proposal for the economic valuation of environmental goods and services derived from forest management and agroforestry systems as well as forest and agroforestry plantations in the Peruvian Amazon. The pre-project aimed also at formulating market mechanisms and policies on environmental goods and services, based on a multi-institutional workshop held with other relevant institutions, particularly from the Amazon Region in Latin America. The pre-project development objective was to incorporate the economic value of environmental goods and services derived from production forests and agroforestry systems in the Amazon Region so as to promote sustainable forest development in Peru.

The pre project produced the following main outputs:

1. A literature review of the methodologies of economic valuation of environmental goods and services derived from forest and agroforestry systems. This review was compiled in a 36-page document annexed to the final report.
2. A three-day Expert Meeting attended by 58 experts from various institutions from Peru as well as from USA, Costa Rica, Colombia and Switzerland, to identify the most successful experiences in the valuation of environmental goods and services derived from forest and agroforestry systems.
3. A project proposal (“Economic Valuation of Production Forest and Agroforestry System in the Peruvian Amazon”) formulated and submitted to ITTO based on the recommendation of the Expert Meeting and the review of existing information on methodologies of economic valuation.

The final report and the project proposal were submitted by ICRAF in February 2003. ITTO is awaiting the final audited financial statements on the use of project funds in accordance with the Project Agreement signed with the implementing agencies.