FOREST ECOSYSTEM SERVICES IN LATVIA: ASSESSING OF EXPERIENCE AND TENDENCIES

The research observed the experience of Latvia in valuing ecosystem services. The development of the economy of Latvia is significantly affected by the forest area reaching 52 % of the country's total area. Assessing the services of the ecosystem of Latvia and valuing them in monetary terms could significantly change the structure of the economy of Latvia. Therefore, the value of ecosystem services consumed domestically and the possibility to export the services should be taken into account when drawing up policy documents for the forest and related industries of Latvia. The research aims to make a theoretical observation and experience collection of ecosystem service valuation methods and indicators that determine the value of ecosystem services and suggest the main methods for valuing the services of the ecosystem of Latvia. It should be acknowledged that no extensive research on the potential monetary contribution of ecosystem services to the national economy has been conducted in Latvia. Several research studies that focused only on certain areas have been carried out in Latvia. It should be emphasized that valuation practice employs a wide range of methods. Therefore, it is necessary to examine and select the most appropriate methods for identifying the value of ecosystem services under Latvian conditions, supplementing the range of the methods and adapting them to local conditions so that they help to more accurately value ecosystem services in the national and international context. Determining the value of ecosystem services would help to redirect the flow of national investment from traditional industries to efficient forest land management. Otherwise, private forest properties are increasingly sold to foreign businesses, which might lead to a lower value of the national capital of Latvia in the future.