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Incidence of the 1996 U.S.–Canada Softwood Lumber Agreement among Landowners, Loggers, and Lumber Manufacturers in the U.S. South

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A framework was developed to estimate the welfare incidence of the 1996 U.S.–Canada Softwood Lumber Agreement among producers in two-processing-stage markets—timberland owners, loggers, and lumber manufacturers—in the U.S. South. Timberland owners are the largest beneficiary whereas lumber manufacturers are the second and loggers the least. Empirically, without considering substitution effects among production inputs, timberland owners have 47.4% of total incremental producer surplus, whereas lumber manufacturers have 39.4% and loggers 13.2%. When the substitution effects are considered, timberland owners gain slightly less whereas lumber manufacturers and loggers gain slightly more.

Keywords: Welfare incidence; probability distributions for parameters; two-processing-stage variable-proportion model

Document Type: Research Article

Affiliations: Yanshu Li, Graduate Research Assistant, School of Forestry and Wildlife Sciences, Auburn University, AL 36849. Daowei Zhang, Professor, School of Forestry and Wildlife Sciences, Auburn University, AL 36849—Phone: (334) 844-1067;

Publication date: August 1, 2006

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  • 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.

    Also published by SAF:
    Journal of Forestry
    Other SAF Publications
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