Ethiopia has experienced a long-term problem with deforestation. Despite the broad implications of such deforestation, or more generally of forests, on human life and economic activities, the accounting of a diverse range of forest values in Ethiopia is still in its infancy. This study aims to set a scope for such a comprehensive accounting of forest values in Ethiopia. Along with an overview of both quantitative and qualitative studies on forest values in Ethiopia, we conduct our own tentative estimation of Ethiopian forest values. Unlike the previous attempts at Ethiopian forest accounting, which are built on a direct extension of the SNA (System of National Accounts) framework, our estimation is based on a welfare-economic framework to evaluate changes in the value of forests as natural capital.
Keywords: forest, natural capital, environmental accounting, ecosystem services