Incidence of the 1996 U.S.-Canada Softwood Lumber Agreement among Landowners, Loggers, and Lumber Manufacturers in the U.S. South
Authors: Li, Yanshu1; Zhang, Daowei1
Source: Forest Science, Volume 52, Number 4, August 2006 , pp. 422-431(10)
Abstract:
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; two-processing-stage variable-proportion model; probability distributions for parameters
Document Type: Research article
Affiliations: 1: 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; zhangdw@auburn.edu.
