14. COMMODITISATION OF ECOSYSTEMS SERVICES AND OTHER NON-WOOD VALUES OF SMALL PLANTATIONS

Forest plantations generate a number of favourable environmental and social benefits for the community, quite apart from the revenue from timber and other private benefits to growers. There has been much interest in whether the positive externalities of natural and plantation forestry – including carbon sequestration, salinity mitigation, biodiversity protection, and watershed and water quality protection – can be converted into market products for which forest owners receive payment. Various mechanisms for marketing ecosystem services have been trialled or suggested. Market-based instruments have advantages over subsidy and grant payments, but are not necessarily more socially efficient. Opportunities exist for marketing ecosystem services (particularly carbon credits). There are signs that these markets will develop in the future, providing the institutional framework is supportive