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Effects of the Free Trade Area of the Americas on Forest Resources

Published online by Cambridge University Press:  15 September 2016

James A. Turner ,
Joseph Buongiorno  and
Shushuai Zhu
James A. Turner
Affiliation:
New Zealand Forest Research Institute in Rotorua, New Zealand
Joseph Buongiorno
Affiliation:
Department of Forest Ecology and Management at the University of Wisconsin-Madison
Shushuai Zhu
Affiliation:
Department of Forest Ecology and Management at the University of Wisconsin-Madison
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Abstract

The effects of the Free Trade Area of the Americas (FTAA) agreement on the forest sectors and resources of member countries are investigated. A model of wood supply within the spatial partial-equilibrium Global Forest Products Model is developed to link international trade and deforestation. The direct effects of tariff changes and the indirect effects of income changes induced by trade liberalization are considered. The FTAA has a small positive impact on the region's forest resources. Higher harvests of industrial roundwood in most countries are offset by increased afforestation due to the income effect of trade liberalization (captured by the environmental Kuznets curve).

Keywords

trade liberalizationinternational tradeforest resourcesforest sector trade model
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 34 , Issue 1 , April 2005 , pp. 104 - 118
Copyright
Copyright © 2005 Northeastern Agricultural and Resource Economics Association 

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