The main objective of the project is to integrate the multi-functionality of the forest into the economic analysis of the wood market and the sustainable management of forests. On the demand side, the various rising needs of society with regard to the forest will be taken into account. These needs are of value, but they also incur costs that have to be covered in one form or another. On the supply side, it is useful to present potential ways of increasing the efficiency of wood production along with options for integrating the other functions of forests (ecological, cultural, etc.) into forestry management. The project analyses the supply and demand aspects of the wood market as a whole and in detail; this is done both on a theoretical and on an empirical level on the basis of suitable statistical and econometric methods.