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The research develops a Composite Forest Biodiversity Indicator (CFBI) to measure the qualitative and quantitative changes in forest ecosystems across 17 European countries. Using a three-stage-least-squares (3SLS) regression model, the authors analyze how rising temperatures, socio-economic factors, and biodiversity loss impact the economic value of provisioning, regulating, and cultural ecosystem services. The findings indicate that while warming generally reduces biodiversity, its effect on ecosystem service values varies by region and service type, suggesting that biodiversity management can mitigate some negative climate impacts.