To an economistʹs perception on sustainability in forestry-in-transition

This paper discusses some of the elements of sustainable forestry concept and examines their implementation to forestry in a country-in-transition. In a country-in-transition forestry is also in transition since it is undergoing principal changes toward a market economy. The study applies the economic concept of sustainability, which requires considering all the factors of forestry development, with the shadow priced costs to be employed in the analysis. The economic theory suggests that a well-functioning market is to account for the costs and benefits of production and set prices to guide resource use in a sustainable way. In forestry-in-transition the recipients of private benefits usually do not repay the society in full for the costs of their activities and externalities often negatively affect forestry. The paper analysis transition performance in the Ukraineʹs forestry and provides evidence of the obstacles to positive changes that need to be overcome. This leads to a number of conclusions, with the view of offering some insights into the connection between sustainability in forestry and the economic transition of the country to a market economy.