Economic aspects of applying the cost approach to assessment of forest resources

Precise and balanced economic evaluation of forest resources is considered as one of the vital conditions of their effective usage. The existing practice of forest resources valuation demonstrates huge gap between the overall evaluation theory and methodologies developed for the forestry. The article is devoted to cost approach to valuation in view of most sufficient types of forest usage and types of forest resources, and demonstrate the key weaknesses of implementation of cost approach to forest resources. The article also provides the brief description of possible solutions for revealed weaknesses mitigation.