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 aim of contribution
The Forests of
the City of Prague
The aim of this contribution is to
provide:
• Information on the provision of
functions suburban forests
• Valuation of the selected
functions
• A proposal for the use the
valuation of non-poductive
functions
Organization The Forests of the City
of Prague
• The Forests of the City of Prague is a nonprofit organization. That is why any
surplus helps to support forest functions.
• 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.
The Forests of
the City of Prague
Structure of organisation
The Forests of
the City of Prague
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
The Forests of the City of Prague
• We care about Prague's forests (2700 ha)
• We maintain watercourses (210 km) and
dams (130 pcs)
• We have two 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
The Forests of
the City of Prague
Valuation of non-production functions
• 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.
The Forests of
the City of Prague
Recreational function 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 to the numbers of
visitors.
• For example, in 2004, Hvězda preserve
was visited by more than half a million
visitors and Kunratický forest even
670,000 visitors.
• The costs of the intensification of the
recreation function anually amounts to
EUR 653,000.
The Forests of
the City of Prague
Cultural and educational functions
• Cultural and educational functions in
2013 represents an annual value of
EUR 675,000
• and capitalized value of EUR
27,615,000.
• This function is significantly influenced
• by numerous small protected areas
• and also environmental education organized
by Forests of the City of Prague.
• The costs of the intensification of this
function amount to EUR 120,000 each
year.
The Forests of
the City of Prague
The annual value of forest functions
(2013)
recreation
cultural-educational
hydric
wood-producing
air-protection
non wood-production
breeding animals and hunting
The Forests of
the City of Prague
741 000 EUR
675 000 EUR
173 220 EUR
136 364 EUR
98 036 EUR
96 762 EUR
16 666 EUR
wood-producing
breeding animals and hunting
non wood-production
hydric
air-protection
recreation
cultural-educational
Conclusions and recommendations
1.
The most highly valued services are
Recreational and Cultural-educational.
2.
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.
3.
The organization wants to expand reporting
about their activities and the state of forests
and the environment.
4.
With the new competencies that the
organization receives 2014, this situation is
about to change. Importance of non-market
functions is increasing.
The Forests of
the City of Prague
The Forests of
the City of Prague
Thank you for your attention!
Ing. Vladimír Krchov, Ph.D., Director The Forests of the City of Prague, krchov@lesy-praha.cz
Ing. Jan Karban, Head of department The Forests of the City of Prague, kraban@lesy-praha.cz
Ing. Mgr. et Mgr. Jan Lípa, MBA, Head of department The Forests of the City of Prague, lipa@lesy-praha.cz
Doc. Ing. Miroslav Hájek, Ph.D., Czech University of Life Sciences in Prague, hajek@fld.czu.cz