Economic effects of reduced forest growth on the United States' forest economy and on Canadian-US lumber trade
Reductions in tree growth rates may be related to increases in acid deposition and other man-made air pollutants over the last three decades. We review the evidence regarding reductions in forest growth and, using economic theory, show how physical changes can impact the production and purchasing decisions of buyers and sellers in timber and primary wood product markets. We then show how standard willingness-to-pay principles can be used to place monetary values on the physical damages caused by air pollution. In the second part of the study, we describe how information about changes in tree growth can be used in conjunction with existing inventory projection and timber market models to simulate the potential economic effects of acid deposition/air pollution in the United States. Two sets of simulations are conducted. The final part of the study presents the results of the simulations, quantifying the potential economic effects of acid deposition in the United States and to a limited extent, Canada. Estimates of the effects of reduced tree growth on the welfare of timber owners and the buyers and sellers of lumber and plywood in the United States are presented, along with information about changes in the welfare of lumber producers in Canada. Results suggest that if increases in Canadian stumpage fees (as a government response to transboundary pollution damage) are not too great, Canadian lumber producers and exporters may actually earn higher profits because of increased demand from the United States for Canadian lumber exports. 16 refs., 3 figs., 6 tabs.
- Research Organization:
- Pacific Northwest Lab., Richland, WA (USA)
- DOE Contract Number:
- AC06-76RL01830
- OSTI ID:
- 6078603
- Report Number(s):
- PNL-SA-14239; CONF-8612108-1; ON: DE88000081
- Resource Relation:
- Conference: Technology transfer conference, Ontario, Canada, 9 Dec 1986; Other Information: Paper copy only, copy does not permit microfiche production
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
29 ENERGY PLANNING
POLICY AND ECONOMY
AIR POLLUTION
ECONOMIC IMPACT
PLANT GROWTH
WOOD PRODUCTS INDUSTRY
ECONOMIC ANALYSIS
ACID RAIN
CANADA
DAMAGE
EVALUATION
FORESTS
INVENTORIES
MARKET
PRICES
SIMULATION
TRADE
TREES
USA
ATMOSPHERIC PRECIPITATIONS
ECONOMICS
GROWTH
INDUSTRY
NORTH AMERICA
PLANTS
POLLUTION
RAIN
510200* - Environment
Terrestrial- Chemicals Monitoring & Transport- (-1989)
290400 - Energy Planning & Policy- Energy Resources