The Forests of the City of Prague Valuation of non-production functions The 17th International Conference EFUF 2014 in Lausanne Switzerland The Forests of the City of Prague

The Forests of the City of Prague The aim of this contribution is to provide: Information on the provision of functions suburban forests Valuation of the selected functions A proposal for the use the valuation of non-poductive functions The aim of contribution

Organization The Forests of the City of Prague The Forests of the City of Prague is a non- profit organization. That is why any surplus helps to support forest functions. A range of activities and production functions generates the financial contribution from the founder. However, this does not cover the full amount of activity and is topping the proceeds of the organization. The basic economic requirement for the founder of the organization is not to lose money. The annual profit is around 0 and positive. The Forests of the City of Prague

Structure of organisation The Forests of the City of Prague Main departments: 1. Department of forests 2. Department of watercourses 3. Department of city parks 4. Department of ecology education + administrative, control and logistics departments

We care about Prague's forests (2700 ha) We maintain watercourses (210 km) and dams (130 pcs) We have two forest nursery with ornamental flowers and trees Caring for injured wild animals in the rescue center We provide educational activities about nature for schools and the general public The Forests of the City of Prague The Forests of the City of Prague

Valuation of non-production functions Valuation of non-production functions is based on methodological approaches of the Czech University of Life Sciences in Prague Valuation of forest ecosystem services is based on social demand for forest functions. Furthermore, valuation methods are based on the expert procedures in the case of non-market functions, which is specific compared to the approach of consumer surplus and willingness to pay. The Forests of the City of Prague

Recreational function in 2013 Recreational function of forests has an annual value of EUR 741,000 and capitalized value of EUR 37,000,000. This value is related to the numbers of visitors. For example, in 2004, Hvězda preserve was visited by more than half a million visitors and Kunratický forest even 670,000 visitors. The costs of the intensification of the recreation function anually amounts to EUR 653,000. The Forests of the City of Prague

Cultural and educational functions Cultural and educational functions in 2013 represents an annual value of EUR 675,000 and capitalized value of EUR 27,615,000. This function is significantly influenced by numerous small protected areas and also environmental education organized by Forests of the City of Prague. The costs of the intensification of this function amount to EUR 120,000 each year. The Forests of the City of Prague

The annual value of forest functions (2013) recreation EUR cultural-educational EUR hydric EUR wood-producing EUR air-protection EUR non wood-production EUR breeding animals and hunting EUR The Forests of the City of Prague

Conclusions and recommendations 1.The most highly valued services are Recreational and Cultural-educational. 2.It could be important if the value of these services will be included in the “balance sheet” to ensure that this form of financing, and type of business, is fully appreciated by stakeholders. Management accounting could be improved. 3.The organization wants to expand reporting about their activities and the state of forests and the environment. 4.With the new competencies that the organization receives 2014, this situation is about to change. Importance of non-market functions is increasing. The Forests of the City of Prague

Thank you for your attention! The Forests of the City of Prague Ing. Vladimír Krchov, Ph.D., Director The Forests of the City of Prague, Ing. Jan Karban, Head of department The Forests of the City of Prague, Ing. Mgr. et Mgr. Jan Lípa, MBA, Head of department The Forests of the City of Prague, Doc. Ing. Miroslav Hájek, Ph.D., Czech University of Life Sciences in Prague,