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Distributive Impacts of Forest Resource Policies in Alberta

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Economy-wide and distributive impacts of: (1) an $80 million increase in pulp and paper exports; (2) a $10 million decrease in lumber exports; (3) a 25% increase in the costs of timber production; and (4) a 25% increase in the costs of pulp and paper production in Alberta's forest sector are examined. A social accounting matrix (SAM)-based quantity model is used to examine the first two shocks, while a SAM-based price model is used to analyze the last two shocks. The results of the quantity model suggest that higher income households get a larger share of the benefits than lower income households in response to an expansion in the pulp and paper industry. A contraction in the lumber sector will hurt higher income households more than lower income households. Larger shares of medium and higher income households in total labor income and capital rents are identified as reasons for this asymmetric response. The results of the price model suggest that additional costs associated with sustainable forest management and environmental regulations will hurt lower income households more than higher income households. The higher share of consumer expenditure in total income for lower income households when compared to that of high income households may be responsible for this result. For. Sci. 45(3):342-348.
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Keywords: Timber production; environmental regulations; pulp and paper industry; social accounting matrix

Document Type: Journal Article

Affiliations: Senior Economist, Canadian Forest Service, Edmonton, Canada--Phone: (403) 435-7315;, Fax: (403) 435-7359

Publication date: 1999-08-01

More about this publication?
  • Forest Science is a peer-reviewed journal publishing fundamental and applied research that explores all aspects of natural and social sciences as they apply to the function and management of the forested ecosystems of the world. Topics include silviculture, forest management, biometrics, economics, entomology & pathology, fire & fuels management, forest ecology, genetics & tree improvement, geospatial technologies, harvesting & utilization, landscape ecology, operations research, forest policy, physiology, recreation, social sciences, soils & hydrology, and wildlife management.
    Forest Science is published bimonthly in February, April, June, August, October, and December.

    2016 Impact Factor: 1.782 (Rank 17/64 in forestry)

    Average time from submission to first decision: 62.5 days*
    June 1, 2016 to Feb. 28, 2017

    Also published by SAF:
    Journal of Forestry
    Other SAF Publications
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