Journal Article

Economic accounting of ethiopian forests: A natural capital approach


  • Narita
  • D.
  • Lemenih
  • M.
  • Shimoda
  • Y.
  • Ayana
  • A.N.

Ethiopia has experienced a long-term deforestation with broad implications for human life and economic activities, but conventional frameworks of economic accounting are not able to assess the country's economic and environmental sustainability in the face of such deforestation problem. In this study, we attempt an economic accounting of Ethiopian forests based on a welfare-economic framework, which assesses changes in the value of forests as natural capital. Our estimates suggest that the recent government re-greening efforts are yet to increase forest assets in the value term, although they have expanded the land areas covered by trees in the country.

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