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Will Economic Valuation Of Nature Be Happily Ever After For Canadian Boreal Forest?

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Will Economic Valuation of Nature Be Happily Ever After for Canadian Boreal Forest?

“Nature with all her beautiful plants and animals along with humans lived happily ever after”- This would be that perfect ending that I would envisage if I ever wrote a fairy tale with Nature as the female protagonist. But with growing human population and increasing demand for natural resources our planet’s happily ever after story seems very distant and distraught. According to Convention of Biological Diversity nearly 20,000 species of plants and animals are at a high risk of extinction and if this trend continues, Earth would see another mass extinction event within a few centuries.
Fortunately, in midst of these negative news reckoning the dooms …show more content…

Can similar valuation exercise lead to Canadian Boreal forests happily ever after?

Picture 2: Mining and gas wells within Boreal forests Photo credit: Green Peace

Firstly, economic valuation of ecosystem services can provide a logical reasoning to oppose unwarranted industrial development in Boreal zone. For instance, a study conducted by Canadian Boreal Initiative on Counting Canada’s Natural Capital estimated the total economic value of boreal ecosystem services (both market and non-market values) in the year 2002 as 750 billion CAD which would equate to 61 percent of the value of Canada’s GDP (as of 2002). Furthermore, on comparing the values, it was found that total non-market value of boreal ecosystem services is 13.8 times greater than the net market value of boreal natural capital extraction. The results imply that economic, ecological and social benefits of boreal forest systems in their pristine state, may be significantly greater than the market values derived from current industrial development—forestry, oil and gas, mining, and hydroelectric energy- combined.

Secondly, the regeneration capacity of these forests are very low so the trees once destroyed, would take much longer to grow back than forests in tropical regions. Fires in Canada’s boreal forest are common, burning an average of 2m ha every year. Insurance Bureau of Canada calculated the damage from wildfire in Fort McMurray, Alta., as $3.58 billion, making it the most expensive disaster for

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