Skip to main content

Joint production and substitution in timber supply: a panel data analysis

Buy Article:

$47.50 plus tax (Refund Policy)

Supply equations for sawlog and pulpwood were developed with a panel of data from 102 Norwegian municipalities, observed from 1980 to 2000. Static and dynamic models were estimated by cross-section, time-series andpanel data methods. A static model estimated by first differencing gavethe best overall results in terms of theoretical expectations, pattern ofresiduals, prediction accuracy and parsimony. The results showed thatsawlog supply responded positively to its own price (elasticity e = 0.91 ± 0.07) but negatively to the pulpwood price (e = -0.22 ± 0.06). The pulpwood supply responded positively to the price of both pulpwood (e = 0.53 ± 0.06) and sawlogs (e = 0.20 ± 0.07). Sawlog and pulpwood supply had a common elasticity of 2.04 (± 0.25) with respect to the growing stock, and of 0.30 (± 0.21) with respect to the interest rate. The supply elasticity of substitution of sawlog for pulpwood with respect to their relative price was 0.74 ± 0.04. Policies to raise the annual harvest, which is currently well below the annual growth, should focus on stimulating sawnwood production (thus increasing sawlog prices), because this would increase supply of both pulpwood and sawlogs. Instead, policies to stimulate pulpwood demand (thus increasing pulpwood prices), would give more pulpwood, but less sawlogs.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Article Media
No Metrics

Document Type: Research Article

Affiliations: 1: Department of Ecology and Natural Resource Management, Norwegian University of Life Sciences, Norway 2: Department of Forest Ecology and Management, University of Wisconsin-Madison, Madison, WI 53706, USA

Publication date: 2010-03-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more