Lazdinis, I., Mavsar, R., Weiss, G. and Lazdinis, M. 2009. Trends in Marketing of Non-market Forest Goods and Services in the Baltic States.  Baltic Forestry 15 (1): 65-76

This study focuses on the forest sectors of the three Baltic States – Estonia, Latvia and Lithuania. It aims to acquire summarized information on the state-of-the-art in the field of valuation of and compensation for non-market forest goods and services in the Baltic States as well as on the perceived potential developments in this field in the future. This study is a part of a larger research exercise commissioned by the European Commission and carried out in the 27 Member States of the European Union in 2008.
First, based on literature review, we provide a brief overview of theoretical aspects of classification of financing mechanisms. Then, using survey we acquired information from national forestry authorities regarding the state of forest goods and services and compensation for provision of non-market forest goods and services in the Baltic States. Finally, also using survey as well as the follow-up expert interviews we learn about the potentials for marketing of non-market forest goods and services in Estonia, Latvia and Lithuania.
Our study indicates that in the Baltic States, as well as in the EU overall, biodiversity protection, climate regulation, carbon sequestration, and water regulation functions of forests are viewed as the most important non-market forest goods and services and their importance is seen to be increasing. The results also show that so far there are only few well functioning mechanisms financing provision of non-market forest goods and services. In this context, the issue of valuation also receives very little attention. We conclude that despite the existing interest, it is quite unlikely that there would be a strong increase in the use of financing mechanisms for provision of non-market forest goods and services in a foreseeable future in the three Baltic States.

Key words: Forestry, Forest management, Valuation, Financing mechanisms, Non-market forest goods and services, Baltic States