The contribution of forests to national income in Ethiopia and linkages with REDD+ (Full report)
OBJECTIVES:
In 2014, the Government of Ethiopia requested the UN-REDD Programme to
support the country in assessing the contribution of forest ecosystems to national
income in the context of the national REDD+ process. The primary objective of the
project was to establish the contribution of Ethiopian forests to national income3
(GDP) by assessing the following.
◾ Value added of the forestry sector: The annual contribution of the production
of forest ecosystem goods and services to GDP attributed to the forestry industry in the Ethiopian System of National Accounts (ESNA).
◾ Contribution of forest ecosystems to other sectors: The annual contribution of the production of forest ecosystem goods and services to GDP attributed
to other industries in the ESNA (for example, the contribution of forest-based
insect pollinators to the value added of the agriculture industry or the contribution of protected areas to the tourism industry).
◾ Non-market benefts: the annual contribution of forest ecosystems to
non-market income in Ethiopia (which is conceptually beyond the scope of
national accounting and therefore not included in GDP).
The contribution of forest ecosystems to national income is seen as a vital element
of the case for forest conservation in Ethiopia. Prior to this study, no full assessment of the income derived from forest-derived goods and services had been
undertaken in the forestry sector or other sectors. The only fgure available had
been the offcial ESNA estimate (MOFEC, 2015) of the contribution of the forestry
industry to GDP (3.8% in 2012-13). By assessing the full contribution of forests to
market and non-market income, a more complete picture of their economic importance emerges.
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