Economic Assessment of the Balanced Development Potential of the Latvian Forestry Sector and Development Scenarios

Latvia’s forest sector is much more than a source of resources – it is a cornerstone of the country’s long-term economic security, climate policy, and regional development. The project addresses four main research directions:

• Regulatory environment analysis – assessing how regulation affects the sector’s competitiveness and sustainability;

• Adaptation of international experience – identifying which successful policies and practices can be transferred to the Latvian context;

• Economic modeling – including cost–benefit analysis, system dynamics simulations, and multi-criteria assessments;

• Development of scenarios – outlining alternative future trajectories, ranging from intensive growth to conservative protection of natural capital.

• A detailed assessment of the sector’s economic contribution and regional impact;

• Three development scenarios with clear benefit and risk profiles;

• Practical policy recommendations for sustainable forest management;

• Strategic recommendations for the sector aligned with the European Green Deal and climate objectives;

• A scientific publication and dissemination of results at the University of Latvia, industry conferences, and expert forums.