Forest Vocation Lands and Forest Policy : When Simpler is Better

The paper discusses basic facts and frameworks about the externalities associated with lands covered with forests, such as externalities related to soil and water; biodiversity and genetic resources preservation; carbon sequestration and stock; and aesthetic, option and existence values. The paper demonstrates that each of these classes of externalities has specific characteristics that require different policy approaches to improve their provision. It discusses the nature of the forest vocation land methodology and demonstrate that it could be useful to address soil and water related externalities in a simpler, more effective, and less costly manner when compared to alternative policy often used