An integrated method for estimating compensations for environmental services of forests

The values of non-marketable forest products have largely been ignored, which made the conservation of the natural resources increasingly more economically difficult. Based on the previous studies, compensation subsidy for the values of non-marketable forest products was computed with a method of compensation coefficient that combines the Engel Coefficient and Logistic Curve. The method was applied in Changbai Mountain area. The total value of the compensation subsidy in 1999 was supposed to 637.93 Yuan·hm-2, of which 70% would be paid directly to the local stakeholders and is much higher than the compensation subsidy previously computed (75Yuan·hm-2·year-1). It is currently impossible for the central government to bear all the costs and investment of natural forest protection. A practical solution is that the local government should invest in forest and put the compensation subsidy into the current revenue.