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A review of recent developments and applications of partial equilibrium models of the forest sector

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  • Latta, Gregory S.
  • Sjølie, Hanne K.
  • Solberg, Birger

Abstract

Recent history has seen an increase in the utilization of partial equilibrium based forest sector models to identify potential impacts of various policies or timber market shocks. These models are particularly useful in that they employ economic theory to capture the interaction of supply and demand in a framework where commodity prices are endogenous to the policy or shock simulated. We present recent developments and linkages between models and review applications of these models to forest policy questions over the previous decade. We conclude with a discussion of potential future directions for such research.

Suggested Citation

  • Latta, Gregory S. & Sjølie, Hanne K. & Solberg, Birger, 2013. "A review of recent developments and applications of partial equilibrium models of the forest sector," Journal of Forest Economics, Elsevier, vol. 19(4), pages 350-360.
    • Handle: RePEc:eee:foreco:v:19:y:2013:i:4:p:350-360
    DOI: 10.1016/j.jfe.2013.06.006
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    21. Claire A. Montgomery & Greg S. Latta & Darius M. Adams, 2006. "The Cost of Achieving Old-Growth Forest Structure," Land Economics, University of Wisconsin Press, vol. 82(2), pages 240-256.
    22. Torjus Bolkesjø & Erik Trømborg & Birger Solberg, 2005. "Increasing Forest Conservation in Norway: Consequences for Timber and Forest Products Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 31(1), pages 95-115, May.
    23. Alig, Ralph J. & Adams, Darius M. & McCarl, Bruce A., 1998. "Ecological and economic impacts of forest policies: interactions across forestry and agriculture," Ecological Economics, Elsevier, vol. 27(1), pages 63-78, October.
    24. Sjølie, Hanne K. & Latta, Gregory S. & Adams, Darius M. & Solberg, Birger, 2011. "Impacts of agent information assumptions in forest sector modeling," Journal of Forest Economics, Elsevier, vol. 17(2), pages 169-184, April.
    25. Im, Eun Ho & Adams, Darius M. & Latta, Gregory S., 2007. "Potential impacts of carbon taxes on carbon flux in western Oregon private forests," Forest Policy and Economics, Elsevier, vol. 9(8), pages 1006-1017, May.
    26. Kallio, A. Maarit I. & Hänninen, Riitta & Vainikainen, Nina & Luque, Sandra, 2008. "Biodiversity value and the optimal location of forest conservation sites in Southern Finland," Ecological Economics, Elsevier, vol. 67(2), pages 232-243, September.
    27. Buongiorno, Joseph & Raunikar, Ronald & Zhu, Shushuai, 2011. "Consequences of increasing bioenergy demand on wood and forests: An application of the Global Forest Products Model," Journal of Forest Economics, Elsevier, vol. 17(2), pages 214-229, April.
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    Cited by:

    1. Adriana Piazza & Bernardo Pagnoncelli, 2015. "The stochastic Mitra–Wan forestry model: risk neutral and risk averse cases," Journal of Economics, Springer, vol. 115(2), pages 175-194, June.
    2. Peter, Brian & Niquidet, Kurt, 2016. "Estimates of residual fibre supply and the impacts of new bioenergy capacity from a forest sector transportation model of the Canadian Prairie Provinces," Forest Policy and Economics, Elsevier, vol. 69(C), pages 62-72.
    3. Joseph Buongiorno, 2021. "GFPMX: A Cobweb Model of the Global Forest Sector, with an Application to the Impact of the COVID-19 Pandemic," Sustainability, MDPI, vol. 13(10), pages 1-18, May.
    4. Miguel Riviere & Sylvain Caurla & Philippe Delacote, 2020. "Evolving Integrated Models From Narrower Economic Tools : the Example of Forest Sector Models," Post-Print hal-02512330, HAL.
    5. Mathieu, Valentin & Roda, Jean-Marc, 2023. "A meta-analysis on wood trade flow modeling concepts," Forest Policy and Economics, Elsevier, vol. 149(C).
    6. Eirik Ogner Jåstad & Torjus Folsland Bolkesjø & Per Kristian Rørstad & Atle Midttun & Judit Sandquist & Erik Trømborg, 2021. "The Future Role of Forest-Based Biofuels: Industrial Impacts in the Nordic Countries," Energies, MDPI, vol. 14(8), pages 1-24, April.
    7. Lauri, Pekka & Forsell, Nicklas & Di Fulvio, Fulvio & Snäll, Tord & Havlik, Petr, 2021. "Material substitution between coniferous, non-coniferous and recycled biomass – Impacts on forest industry raw material use and regional competitiveness," Forest Policy and Economics, Elsevier, vol. 132(C).
    8. Hurmekoski, Elias & Sjølie, Hanne K., 2018. "Comparing forest sector modelling and qualitative foresight analysis: Cases on wood products industry," Journal of Forest Economics, Elsevier, vol. 31(C), pages 11-16.
    9. Etienne Lorang & Antonello Lobianco & Philippe Delacote, 2023. "Increasing Paper and Cardboard Recycling: Impacts on the Forest Sector and Carbon Emissions," Post-Print hal-04690101, HAL.
    10. Miguel Riviere & Sylvain Caurla, 2020. "Representations of the Forest Sector in Economic Models [Les représentations du secteur forestier dans les modèles économiques]," Post-Print hal-03088084, HAL.
    11. Nwachukwu, Chinedu Maureen & Olofsson, Elias & Lundmark, Robert & Wetterlund, Elisabeth, 2022. "Evaluating fuel switching options in the Swedish iron and steel industry under increased competition for forest biomass," Applied Energy, Elsevier, vol. 324(C).
    12. Jåstad, Eirik Ogner & Mustapha, Walid Fayez & Bolkesjø, Torjus Folsland & Trømborg, Erik & Solberg, Birger, 2018. "Modelling of uncertainty in the economic development of the Norwegian forest sector," Journal of Forest Economics, Elsevier, vol. 32(C), pages 106-115.
    13. Miguel RIVIERE & Sylvain CAURLA, 2018. "Integrating non-timber objectives into bio-economic models of the forest sector: a review of recent innovations and current shortcomings," Working Papers of BETA 2018-26, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    14. Kolo, Horst & Tzanova, Polia, 2017. "Forecasting the German forest products trade: A vector error correction model," Journal of Forest Economics, Elsevier, vol. 26(C), pages 30-45.
    15. Mustapha, Walid Fayez & Trømborg, Erik & Bolkesjø, Torjus Folsland, 2019. "Forest-based biofuel production in the Nordic countries: Modelling of optimal allocation," Forest Policy and Economics, Elsevier, vol. 103(C), pages 45-54.
    16. Korhonen, Jaana & Henderson, Jesse D. & Prestemon, Jeffrey, 2023. "National forest timber bids and export price interlinkages in the USA: The bounds testing approach," Forest Policy and Economics, Elsevier, vol. 152(C).
    17. Repo, Anna & Ahtikoski, Anssi & Liski, Jari, 2015. "Cost of turning forest residue bioenergy to carbon neutral," Forest Policy and Economics, Elsevier, vol. 57(C), pages 12-21.
    18. Sotirov, Metodi & Sallnäs, Ola & Eriksson, Ljusk Ola, 2019. "Forest owner behavioral models, policy changes, and forest management. An agent-based framework for studying the provision of forest ecosystem goods and services at the landscape level," Forest Policy and Economics, Elsevier, vol. 103(C), pages 79-89.
    19. Natalia Evgenyevna Antonova, 2018. "Evaluation of Economic Agents Responses of on Institutional Changes in the Region Forest Complex," Spatial Economics=Prostranstvennaya Ekonomika, Economic Research Institute, Far Eastern Branch, Russian Academy of Sciences (Khabarovsk, Russia), issue 4, pages 115-138.
    20. Guo, Jinggang & Gong, Peichen, 2017. "The potential and cost of increasing forest carbon sequestration in Sweden," Journal of Forest Economics, Elsevier, vol. 29(PB), pages 78-86.

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    More about this item

    Keywords

    Partial equilibrium; Forest sector modeling; Economic analysis;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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