The dissertation is devoted to the study of theoretical and methodological bases and development of scientific and practical recommendations on improvement of the institutional environment of the forest governance system in Ukraine based on the application of the scientific and methodical approach to assessment and diagnostics of the forest governance system. The dissertation investigates and clarifies the essence of the terms: "forest management", "forest governance", "forest governance system", "forest institutions". It is proposed to define the term "forest governance system" as a network of interconnected and interdependent state, public, and private organizations, which under the conditions of formation and development of formal and informal institutions determine the features of forest use, reforestation, protection and preservation of forests and rules of their interaction in order to achieve environmental and economic efficiency of forestry and related sectors of economic activity. The essence of the institutional environment of the forest governance system of Ukraine is specified. The evolution of trends and the growing role of stakeholders in the forest governance system is illustrated. Summarizing the analysis of theoretical foundations and methodological tools of forest governance assessment, in the first time a scientific and methodological approach to the assessment and diagnosis of the forest governance system of Ukraine is proposed. The approach is based on the use of indicators that reflect the key challenges of imroving the forest governance system and take into account the main elements of the forest governance system: political, legal, institutional, regulatory bases of forestry, planning and decision-making process, implementation, enforcement, and compliance. As a result of the approbation of the scientific and methodological approach and expert assessment of indicators, it was found that the forest governance system of Ukraine is characterized as "partially effective". A socio- economic study on the willingness of the population to pay for hydrological and cultural services of forest ecosystems was conducted using the method of contingent valuation and correlation and regression analysis. The study shows that the willingness to pay for hydrological services of forest ecosystems is lower than the willingness to pay for cultural services and depends on the average monthly income and place of residence of the respondent. Based on this, payment schemes for hydrological services of forest ecosystems in Ukraine could be recommended as local, in some areas with problems of low quality drinking water. To achieve optimal forest cover in Ukraine, it is proposed to use the public scheme of payment for forest ecosystem services in the implementation of measures for afforestation of unproductive, degraded land plots and agricultural land plots that are not used. Institutional changes in the forest governance system of Ukraine are proposed, which reflect the interconnectedness and interdependence of the institutional environment of forestry. The logical and semantic scheme of improvement of the forest governance system of Ukraine is developed. It is established that in order to improve the institution of law in the forest governance system, it is necessary to adopt the Law of Ukraine “On the National Forest Policy”, the forestry strategy and development program. For the further transition to a forest governance system with a clear division of management functions, it is recommended to split the economic functions and the control function in forestry and to eliminate the duplication of control function. In order to improve market institutions, it is proposed to use a system of measures to support the creation of private forests, to develop a mechanism for the conversion of afforested agricultural areas into forests, and to use a public scheme for forest ecosystem services. Among the informal forestry institutions, measures to combat forest corruption and increase the role of the civil society are revealed. Fulfillment of international obligations in the field of forestry is a necessary part of further improvement of the international institute of law.
