Forest Management, Conservation, and Global Timber Markets

13 Pages Posted: 31 Mar 2020

See all articles by Brent Sohngen

Brent Sohngen

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

Robert Mendelsohn

Royal & Sun Alliance

Roger Sedjo

Resources for the Future

Date Written: February 1999

Abstract

This article develops a global timber market model which captures how timber supply reacts to future predicted increases in the demand for timber. Higher future demand is expected to increase prices, increase investments in regeneration, increase establishment of plantations, and expand output. Dynamic market responses imply a greater reliance on plantations in productive regions, allowing large areas of natural forest in low‐valued regions to remain largely intact. Sensitivity analysis suggests that price, harvest, and management are most sensitive to the rate of demand increase, the interest rate, the cost of plantations, and access costs of natural forests. Two forest conservation strategies are examined which predict the system‐wide implications of forest conservation in Europe and North America. The policies indicate that whereas set asides can induce net conservation, harvests increase elsewhere, particularly in natural forests.

Keywords: conservation, dynamic optimization, timber markets, L730, O130, Q230

Suggested Citation

Sohngen, Brent L. and Mendelsohn, Robert and Sedjo, Roger, Forest Management, Conservation, and Global Timber Markets (February 1999). American Journal of Agricultural Economics, Vol. 81, Issue 1, pp. 1-13, 1999, Available at SSRN: https://ssrn.com/abstract=3563734 or http://dx.doi.org/10.2307/1244446

Brent L. Sohngen (Contact Author)

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

2120 Fyffe Rd
Ag Admin
Columbus, OH 43210-1067
United States

Robert Mendelsohn

Royal & Sun Alliance

Level 23
2 Market Street
Sydney NSW 2000
Australia

Roger Sedjo

Resources for the Future

1616 P Street, NW
Washington, DC 20036
United States

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