Impact Of Certification On Forest Assets Evaluation

The attention to ecological environment is steadily increasing in the world. A series of relevant bills and regulations are being successively enacted and implemented. As a market mechanism, forest certification is promoting a sustainable way of forest management and has received widespread attention. Particularly, in the international trade of forest products, forest certification has become an important part of'access system'. But the field of certified timber has been developing slowly in China. One major reason is a traditional notion that forest certification will result in higher costs and lower profits for forest management enterprises.According to related theories about forest assets evaluation and'FSC Principles and Criteria', the paper theoretically analyzes the impact of forest certification on technical and economic indicators used in forest assets evaluation. In the case of Huaxing forest farm in Fujian Province, the paper refers to forest management costs, timber operating costs and timber prices of Fujian Yong'an Forestry (Group) Co., Ltd. and its surrounding forest farms, evaluates forest assets whether Huaxing forest farm carries out FSC forest certification or not, and calculates forest value, timber value, timber prices and timber operating costs. Finally, after comparing the results of the assessment, this paper reaches the following conclusions, focusing on large and medium-sized forest management enterprises operated in a manner consistent with environmental requirements:First, the impact of FSC forest certification on forest management costs in the forest cultivation stage is not significant. But the costs in the timber harvest stage approximately increase by 9%.Second, timber value is equal to forest value with the input in the timber harvest stage. The value of certified timber approximately increases by 10.5%. Third, the increasing degree of certified timber costs is less than that of its value and price. Thus, FSC forest certification will not compress profit margin, and on the contrary, increase the business profitability. Based on the theoretical analysis about the impact of certification on forest assets evaluation, with the assessments of Huaxing forest farm, the paper offers corresponding suggestions from the perspectives of forest management enterprises, governments and consumers. First, forest management enterprises should consider their own situations, and actively prepare for the implementation of forest certification. And the enterprises, not having the condition temporarily, should improve the mode of operation in accordance with FSC certification standard. Second, governments should intensify propaganda, and promote the promotion of forest certification by rational use of economic and legal means. Third, consumers should continue to culture and strengthen the concept of green consumption, initiatively buy certified forest products, and actively participate in environmental non-governmental organizations.