Abstract: Desertification and Deforestation are serious environmental concerns in the Sahel and East African countries, including Eritrea. The dilapidation and natural forests loss due to deforestation and desertification have an irreversible impact on the services provided by the ecosystem. In recent decades Eritrea also experienced a serious threat of forest ecosystem loss and degradation resulting in the degradation of ecosystem services. Estimating the variation in this ecosystems economic values due to deforestation and desertification is an important research topic in this area.