The continued conversion and development of forest land pose a serious threat to the ecosystem services derived from forested landscapes. There are unavoidable challenges involved in quantifying the threats from forest conversion and their related costs to human well-being: (1) most attempts to quantify the costs of forest conversion on ecosystem services will necessarily rely on specific ecological science that is often emerging, changing, or simply nonexistent; (2) given the interconnected nature of ecosystem products and processes, any attempt to quantify the effects of forest conversion must grapple with jointness in production; (3) the ecology and the human dimensions of ecosystems are highly specific to spatial-temporal circumstances.

The continued conversion and development of forest land pose a serious threat to the ecosystem services derived from forested landscapes. We argue that developing an understanding of the full range of consequences from forest conversion requires understanding the effects of such conversion on both components of ecosystem services: products and processes. However, there are unavoidable challenges involved in quantifying the threats from forest conversion and their related costs to human well-being. First, most attempts to quantify the costs of forest conversion on ecosystem services will necessarily rely on specific ecological science that is often emerging, changing, or simply nonexistent. For example, the role that many species play in ecosystem processes is poorly understood. Second, given the interconnected nature of ecosystem products and processes, any attempt to quantify the effects of forest conversion must grapple with jointness in production. For example, the cost of losing a species from forest conversion must account for that species' role as both (1) a product that directly contributes to human well-being, and (2) as a component in an ecosystem process. Finally, the ecology and the human dimensions of ecosystems are highly specific to spatial-temporal circumstances. Consequently, the effects of forest conversion in one spatial-temporal context are likely to be quite different than effects elsewhere.

The continued conversion and development of forest land pose a serious threat to the ecosystem services derived from forested landscapes. We argue that developing an understanding of the full range of consequences from forest conversion requires understanding the effects of such conversion on both components of ecosystem services: products and processes. However, there are unavoidable challenges involved in quantifying the threats from forest conversion and their related costs to human well-being. First, most attempts to quantify the costs of forest conversion on ecosystem services will necessarily rely on specific ecological science that is often emerging, changing, or simply nonexistent. For example, the role that many species play in ecosystem processes is poorly understood. Second, given the interconnected nature of ecosystem products and processes, any attempt to quantify the effects of forest conversion must grapple with jointness in production. For example, the cost of losing a species from forest conversion must account for that species' role as both (1) a product that directly contributes to human well-being, and (2) as a component in an ecosystem process. Finally, the ecology and the human dimensions of ecosystems are highly specific to spatial-temporal circumstances. Consequently, the effects of forest conversion in one spatial-temporal context are likely to be quite different than effects elsewhere.

The world-wide conversion of forest land to commercial and residential use is increasingly affecting the ability of ecosystems to provide basic services to humankind. Conversion of forest land affects both private and public forest ownerships. Predicted increases in population growth over the coming decades are expected to result in steadily increasing fragmentation of currently cohesive forest lands. This development can potentially reduce the goods and services derived from both publicly and privately owned forests. This book uses the ecosystem service conceptual framework as a basis for understanding the ecological effects of forest-land conversion, and as a basis for understanding the economic issues that arise in designing policies to conserve forest ecosystems.

Ecosystems and biodiversity have been degraded over decades due to human activities. One of the critical causes is market failure: the current market only accounts tangible resources and neglects intangible functions, such as climate control and natural hazard mitigation. Under such circumstances in capitalism, land conversion and resource exploitation, which generate financial income, are highly prioritised over conservation, which is not necessarily beneficial in monetary terms. To halt ecosystem degradation, thus, the values of ecosystem services need to be visualised and economic instruments for ecosystem conservation should be further developed. This book focuses on these two aspects and performs several studies, including valuation of ecosystem services, productivity analysis, institutional design of payment for ecosystem services (PES), impact assessment of reduction emission from deforestation and forest degradation (REDD), and economic experiment of mitigation banking scheme. From these analysis, economic values of ecosystem services are demonstrated from both supply and demand side, and the directions for improving economic instruments are indicated both directly and indirectly. As many of these analysis are usually conducted in the North America and Europe, this book is unique in geographical focus, namely, Japan, Asia and globe. Also, wide variety of ecosystems are targeted for studies; agricultural lands, forests, wetlands, and marine. Hence, this will be informative introduction for those who desire to study economics of biodiversity and ecosystem services in these regions and of these ecological zones.

This paper identifies the essential features of the forestry economics literature emphasizing what is different about forestry and what are forestry's important features for project and program analysis. The important conclusion, is that economic tools are both available and appropriate for the analysis of a wide range of forest policy problems. The report is divided into two parts. The characteristics that received special attention in the first part are the embodiment of both productive capital and final output in any standing forest inventory, and the long time periods that often distinguish forest production. A third distinguishing characteristics is the joint production nature of many forest resource services. The second part of the paper visits seven special topics that are important to forestry and economic development: (1) timber production; (2) smallholder forest management; (3) forestry research, education, and extension; (4) tenure; (5) policy spillovers from other sectors of the economy that can substantially alter forests and forestland management; (6) non-timber multiple use values; and (7) deforestation, timber famine or its counter, sustainable forest management.

This book aims to systematically elaborate how land-use change directly or indirectly exerts impacts on the ability of ecosystems to provide services for human society. The relationship between land use, ecosystem services and human well-being is a hot topic, and there have been some important achievements in this field, but its continuing growth means that it warrants further research. The unique viewpoint, the scientific analysis methods and the precise language of this book make it not only a valuable guide for professors conducting research, but also a reference resource to help governments make decisions on relevant policies. Prof. Jinyan Zhan is an associate professor at the School of Environment, Beijing Normal University, China.