Abstract

Using meta data on crop output, crop output together with productivity of animal husbandry, surface water volume, ground water volume and cover of cloud wet afromontane forests in selected four regions which are major food producers in Ethiopia the functions and the services of the forests were modelled. Forest cover significantly and positively explained agricultural productivity, surface and ground water volume in Ethiopia. In similar regression modeling it was determined that food productivity across regions was result of the volume of surface water and ground water. This clearly indicates unwarranted destructive alteration of the forest cover in the country would have unprecedented negative effects thereby exasperating natural disasters which ultimately will cause a negative shock to the overall economy. Furthermore increasing forest cover through the planting of trees and others would have significant positive effect on the economy which enhances the wellbeing of a significant portion of the population in the country. Key Words: Ecosystem Functions, Ecosystem Services, Ethiopia

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