Institutional and Policy Implications in the Mediterranean Region

Multifunctionality \u2013 the capacity of producing more than one good or service at the same time \u2013 is intimately embedded in the nature of Mediterranean forests. In economic terms, the essential feature of this multiple-production is jointness: two or more outputs are jointly produced by the same set of production factors. In the specific case of forests, market and non-market goods are produced at the same time by the same forest unit. The nature of this jointness among the forest outputs is complex: economic relationships of complementarity, indifference or competition between the two sets of goods \u2013 market and non-market \u2013 may arise. These competitive relationships are responsible for generating conflicts in the use of the forest resource: the attempt to reconcile these conflicts can be considered one of the greatest challenges facing forestry and the design of forest policy in the near future. Exploring how this can be accomplished is the main focus of this chapter. First, the general set of policy tools employed in forests will be described, with regard to their development and the overall picture, pros and cons, successes and failures. As far as possible an attempt will be made to find out boundaries and interrelationships, synergies and contrasts amongst tools. Then reference will be made to the present situation of policies and institutions in the Mediterranean countries. Finally, some conclusions will be drawn with reference to implications and recommendations for a more efficient multipurpose policy of Mediterranean forests