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The Forests of the City of Prague Valuation of non-production functions

The Forests of the City of Prague. The Forests of the City of Prague Valuation of non-production functions. The 17th International Conference EFUF 2014 in Lausanne Switzerland. The Forests of the City of Prague. The aim of contribution. The aim of this contribution is to provide :

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The Forests of the City of Prague Valuation of non-production functions

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  1. The Forests of the City of Prague The Forests of the City of PragueValuation of non-production functions The 17th International Conference EFUF 2014 in Lausanne Switzerland

  2. The Forests of the City of Prague The aim of contribution • Theaim of thiscontributionis to provide: • Information on theprovision of functionssuburbanforests • Valuation of theselectedfunctions • A proposalfor the use thevaluation of non-poductivefunctions

  3. The Forests of the City of Prague OrganizationThe Forests of the City of Prague • The Forests of the City of Prague is a non-profit organization. Thatiswhyany surplus helps to support forestfunctions. • A range of activities and production functions generates the financial contribution from the founder. However, this does not cover the full amount of activity and is topping the proceeds of the organization. • The basic economic requirement for the founder of the organization is not to lose money. The annual profit is around 0 and positive.

  4. The Forests of the City of Prague Structureoforganisation Main departments: 1. Department of forests 2. Department of watercourses 3. Department of city parks 4. Department of ecology education  + administrative, control and logistics departments

  5. The Forests of the City of Prague TheForests of the City of Prague • We care about Prague's forests (2700 ha) • We maintain watercourses (210 km) and dams (130 pcs) • We havetwo forest nursery with ornamental flowers and trees • Caring for injured wild animals in the rescue center • We provide educational activities about nature for schools and the general public

  6. The Forests of the City of Prague Valuationof non-productionfunctions • Valuation of non-production functions is based on methodological approaches of the Czech University of Life Sciences in Prague • Valuation of forest ecosystem services is based on social demand for forest functions. • Furthermore, valuation methods are based on the expert procedures in the case of non-market functions, which is specific compared to the approach of consumer surplus and willingness to pay.

  7. The Forests of the City of Prague Recreationalfunction in 2013 • Recreational function of forests has an annual value of EUR 741,000 and capitalized value of EUR 37,000,000. • This value is related tothe numbers of visitors. • Forexample, in 2004, Hvězda preservewasvisited by more than half a millionvisitors and Kunratický foresteven 670,000 visitors. • The costs of the intensification of the recreationfunction anually amountsto EUR 653,000.

  8. The Forests of the City of Prague Cultural and educationalfunctions • Cultural and educationalfunctions in 2013 representsanannualvalue of EUR 675,000 • and capitalizedvalue of EUR 27,615,000. • Thisfunctionissignificantlyinfluenced • by numeroussmallprotectedareas • and also environmental educationorganized by Forests of the City of Prague. • Thecosts of theintensification of thisfunctionamount to EUR 120,000each year.

  9. The Forests of the City of Prague The annual value of forest functions (2013) recreation 741 000 EUR cultural-educational 675 000 EUR hydric 173 220 EUR wood-producing 136 364 EUR air-protection 98 036 EUR non wood-production 96 762 EUR breeding animals and hunting 16 666 EUR

  10. The Forests of the City of Prague Conclusions and recommendations • The most highly valued services are Recreational and Cultural-educational. • It could be important if the value of these services will be included in the “balance sheet” to ensure that this form of financing, and type of business, is fully appreciated by stakeholders. Management accounting could be improved. • The organization wants to expand reporting about their activities and the state of forests and the environment. • With the new competencies that the organization receives 2014, this situation is about to change. Importance of non-market functions is increasing.

  11. The Forests of the City of Prague Thank you for your attention! Ing. Vladimír Krchov, Ph.D.,DirectorTheForestsofthe City of Prague, krchov@lesy-praha.cz Ing. Jan Karban,Headof department TheForestsofthe City of Prague, kraban@lesy-praha.cz Ing. Mgr. et Mgr. Jan Lípa, MBA, Headof department TheForestsofthe City of Prague, lipa@lesy-praha.cz Doc. Ing. Miroslav Hájek, Ph.D., Czech University ofLifeSciences in Prague, hajek@fld.czu.cz

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