FULOK-ECO 112- Reading Materials
Week 1: Introduction to Economics of Deforestation
1. Definition and Types of Forests
Definition of Forests
A forest is a large area covered chiefly with trees and undergrowth, forming a complex ecosystem
that includes various forms of life—trees, shrubs, animals, fungi, and microorganisms. Forests are
dynamic systems that provide a range of ecological and economic services.
Types of Forests
Forests are classified based on climatic, geographical, and ecological characteristics. The major
types include:
Tropical Rainforests
a. Located near the equator (e.g., Amazon, Congo Basin, Southeast Asia)
b. Hot and humid all year round
c. Rich in biodiversity
d. Examples: Amazon Rainforest, Congo Basin Forest
Temperate Forests
a. Found in mid-latitude areas (e.g., parts of North America, Europe, East Asia)
b. Four distinct seasons
c. Deciduous or evergreen trees
Boreal or Taiga Forests
a. Located in high-latitude regions (e.g., Canada, Russia, Scandinavia)
b. Composed mostly of coniferous trees
c. Cold climate with short growing seasons
1
,Mangrove Forests
a. Found in tropical and subtropical coastal areas
b. Support unique marine and terrestrial species
c. Provide protection against coastal erosion and flooding
Montane Forests
a. Found in mountainous regions
b. Exhibit vertical stratification based on elevation
Meaning and Scope of Deforestation
Definition of Deforestation
Deforestation is the permanent removal of forest cover for the purpose of converting the land to
non-forest uses such as agriculture, urban development, logging, or mining. It involves not only
tree cutting but also the destruction of biodiversity and alteration of ecosystems.
Related Terms:
i. Forest degradation: Reduction in forest quality due to human activities.
ii. Afforestation: Planting trees on land not previously forested.
iii. Reforestation: Replanting trees on deforested land.
Scope of Deforestation
i. Geographical Scope: Affects both tropical and temperate forests but is most pronounced in
tropical developing countries.
ii. Sectoral Scope: Linked to agriculture, forestry, infrastructure, and mining.
iii. Temporal Scope: Can be short-term (slash-and-burn) or long-term (large-scale agriculture
or urbanization).
iv. Global Concern: Impacts global biodiversity, climate systems, water cycles, and
indigenous communities.
2
, Importance of Forests in Economic Development
Forests play an essential role in supporting national economies and local livelihoods. They provide
market and non-market benefits, which are often undervalued in conventional economic systems.
Economic Contributions:
Timber and Non-Timber Products
a. Timber for construction and paper
b. Non-timber forest products (NTFPs): resins, fruits, herbs, oils, and honey
Employment and Income
a. Provides jobs in logging, processing, tourism, and conservation sectors
b. Supports millions in informal forest-related activities
Contribution to GDP
In forest-rich countries, forestry may account for a significant portion of GDP and exports
Ecosystem Services (Non-market Benefits)
a. Climate regulation (carbon sequestration)
b. Water purification
c. Flood control
d. Soil conservation
e. Biodiversity habitat
Tourism and Recreation
Ecotourism is a major source of foreign exchange in some countries
Livelihoods and Food Security
a. Forests serve as safety nets for rural communities in times of hardship
b. Source of wild food, fodder, and fuelwood
3
Week 1: Introduction to Economics of Deforestation
1. Definition and Types of Forests
Definition of Forests
A forest is a large area covered chiefly with trees and undergrowth, forming a complex ecosystem
that includes various forms of life—trees, shrubs, animals, fungi, and microorganisms. Forests are
dynamic systems that provide a range of ecological and economic services.
Types of Forests
Forests are classified based on climatic, geographical, and ecological characteristics. The major
types include:
Tropical Rainforests
a. Located near the equator (e.g., Amazon, Congo Basin, Southeast Asia)
b. Hot and humid all year round
c. Rich in biodiversity
d. Examples: Amazon Rainforest, Congo Basin Forest
Temperate Forests
a. Found in mid-latitude areas (e.g., parts of North America, Europe, East Asia)
b. Four distinct seasons
c. Deciduous or evergreen trees
Boreal or Taiga Forests
a. Located in high-latitude regions (e.g., Canada, Russia, Scandinavia)
b. Composed mostly of coniferous trees
c. Cold climate with short growing seasons
1
,Mangrove Forests
a. Found in tropical and subtropical coastal areas
b. Support unique marine and terrestrial species
c. Provide protection against coastal erosion and flooding
Montane Forests
a. Found in mountainous regions
b. Exhibit vertical stratification based on elevation
Meaning and Scope of Deforestation
Definition of Deforestation
Deforestation is the permanent removal of forest cover for the purpose of converting the land to
non-forest uses such as agriculture, urban development, logging, or mining. It involves not only
tree cutting but also the destruction of biodiversity and alteration of ecosystems.
Related Terms:
i. Forest degradation: Reduction in forest quality due to human activities.
ii. Afforestation: Planting trees on land not previously forested.
iii. Reforestation: Replanting trees on deforested land.
Scope of Deforestation
i. Geographical Scope: Affects both tropical and temperate forests but is most pronounced in
tropical developing countries.
ii. Sectoral Scope: Linked to agriculture, forestry, infrastructure, and mining.
iii. Temporal Scope: Can be short-term (slash-and-burn) or long-term (large-scale agriculture
or urbanization).
iv. Global Concern: Impacts global biodiversity, climate systems, water cycles, and
indigenous communities.
2
, Importance of Forests in Economic Development
Forests play an essential role in supporting national economies and local livelihoods. They provide
market and non-market benefits, which are often undervalued in conventional economic systems.
Economic Contributions:
Timber and Non-Timber Products
a. Timber for construction and paper
b. Non-timber forest products (NTFPs): resins, fruits, herbs, oils, and honey
Employment and Income
a. Provides jobs in logging, processing, tourism, and conservation sectors
b. Supports millions in informal forest-related activities
Contribution to GDP
In forest-rich countries, forestry may account for a significant portion of GDP and exports
Ecosystem Services (Non-market Benefits)
a. Climate regulation (carbon sequestration)
b. Water purification
c. Flood control
d. Soil conservation
e. Biodiversity habitat
Tourism and Recreation
Ecotourism is a major source of foreign exchange in some countries
Livelihoods and Food Security
a. Forests serve as safety nets for rural communities in times of hardship
b. Source of wild food, fodder, and fuelwood
3
