IDEAS home Printed from https://ideas.repec.org/a/eee/forpol/v10y2008i6p386-399.html
   My bibliography  Save this article

Market impacts of a multiyear mechanical fuel treatment program in the U.S

Author

Listed:
  • Prestemon, Jeffrey P.
  • Abt, Karen L.
  • Huggett Jr., Robert J.

Abstract

We describe a two-stage model of global log and chip markets that evaluates the spatial and temporal economic effects of government-subsidized fire-related mechanical fuel treatment programs in the U.S. West and South. The first stage is a goal program that allocates subsidies according to fire risk and location priorities, given a budget and a feasible, market-clearing market solution. The second stage is a quadratic welfare maximization spatial equilibrium model of individual State and global product markets, subject to the fuel treatment allocation. Results show that the program enhances timber market welfare in regions where treatments occur and globally but has an overall negative economic impact, once fuel treatment program costs are included. The overall cost of a mechanical fuel treatment program, when considering timber market welfare, transport costs, treatment costs, and timber receipts, exceeds $1000 per acre, implying that the long run fire effects and ecosystem net benefits of a treatment program would need to exceed this figure in order to justify widespread implementation.

Suggested Citation

  • Prestemon, Jeffrey P. & Abt, Karen L. & Huggett Jr., Robert J., 2008. "Market impacts of a multiyear mechanical fuel treatment program in the U.S," Forest Policy and Economics, Elsevier, vol. 10(6), pages 386-399, August.
    • Handle: RePEc:eee:forpol:v:10:y:2008:i:6:p:386-399
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1389-9341(08)00007-5
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Prestemon, Jeffrey P. & Wear, David N. & Stewart, Fred J. & Holmes, Thomas P., 2006. "Wildfire, timber salvage, and the economics of expediency," Forest Policy and Economics, Elsevier, vol. 8(3), pages 312-322, April.
    2. Darius M. Adams & Clark S. Binkley & Peter A. Cardellichio, 1991. "Is the Level of National Forest Timber Harvest Sensitive to Price?," Land Economics, University of Wisconsin Press, vol. 67(1), pages 74-84.
    3. Chambers,Robert G., 1988. "Applied Production Analysis," Cambridge Books, Cambridge University Press, number 9780521314275, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. Prestemon, Jeffrey P. & Abt, Karen L. & Barbour, R. James, 2012. "Quantifying the net economic benefits of mechanical wildfire hazard treatments on timberlands of the western United States," Forest Policy and Economics, Elsevier, vol. 21(C), pages 44-53.
    3. Crandall, Mindy S. & Adams, Darius M. & Montgomery, Claire A. & Smith, David, 2017. "The potential rural development impacts of utilizing non-merchantable forest biomass," Forest Policy and Economics, Elsevier, vol. 74(C), pages 20-29.
    4. Becker, Dennis R. & Nechodom, Mark & Barnett, Adam & Mason, Tad & Lowell, Eini C. & Shelly, John & Graham, Dean, 2009. "Assessing the role of federal community assistance programs to develop biomass utilization capacity in the western United States," Forest Policy and Economics, Elsevier, vol. 11(2), pages 155-162, March.
    5. 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).
    6. Barbour, R. James & Fried, Jeremy S. & Daugherty, Peter J. & Christensen, Glenn & Fight, Roger, 2008. "Potential biomass and logs from fire-hazard-reduction treatments in Southwest Oregon and Northern California," Forest Policy and Economics, Elsevier, vol. 10(6), pages 400-407, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jongeneel, Roelof A. & Ge, Lan, 2005. "Explaining Growth in Dutch Agriculture: Prices, Public R&D, and Technological Change," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24573, European Association of Agricultural Economists.
    2. Paul, Saumik, 2019. "A Decline in Labor's Share with Capital Accumulation and Complementary Factor Inputs: An Application of the Morishima Elasticity of Substitution," IZA Discussion Papers 12219, Institute of Labor Economics (IZA).
    3. Massimo Filippini & Cornelia Luchsinger, 2007. "Economies of scale in the Swiss hydropower sector," Applied Economics Letters, Taylor & Francis Journals, vol. 14(15), pages 1109-1113.
    4. Peterson, Jeffrey M. & Boisvert, Richard N. & de Gorter, Harry, 1999. "Multifunctionality and Optimal Environmental Policies for Agriculture in an Open Economy," Working Papers 127701, Cornell University, Department of Applied Economics and Management.
    5. Cai, Yiyong & Newth, David & Finnigan, John & Gunasekera, Don, 2015. "A hybrid energy-economy model for global integrated assessment of climate change, carbon mitigation and energy transformation," Applied Energy, Elsevier, vol. 148(C), pages 381-395.
    6. V. Vandenberghe, 2018. "The Contribution of Educated Workers to Firms’ Efficiency Gains: The Key Role of Proximity to the ‘Local’ Frontier," De Economist, Springer, vol. 166(3), pages 259-283, September.
    7. Tchale, H. & Sauer, J., 2007. "Soil Fertility Management and Agricultural Productvity in Malawi," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 42, March.
    8. Oleg Badunenko & Michael Fritsch & Andreas Stephan, 2006. "What Determines the Technical Efficiency of a Firm? The Importance of Industry, Location, and Size," Jenaer Schriften zur Wirtschaftswissenschaft (Expired!) 33/2006, Friedrich-Schiller-Universität Jena, Wirtschaftswissenschaftliche Fakultät.
    9. David Van Dijcke, 2022. "On the Non-Identification of Revenue Production Functions," Papers 2212.04620, arXiv.org, revised May 2024.
    10. Margarita Genius & Spiro Stefanou & Vangelis Tzouvelekas, 2009. "Productivity Growth and Efficiency under Leontief Technology: An Application to US Steam-Electric Power Generation Utilities," Working Papers 0913, University of Crete, Department of Economics.
    11. Shumway, C. Richard & Davis, George C., 2001. "Does consistent aggregation really matter?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-34.
    12. Mehdi Farsi & Aurelio Fetz & Massimo Filippini, 2007. "Benchmarking and Regulation in the Electricity Distribution Sector," CEPE Working paper series 07-54, CEPE Center for Energy Policy and Economics, ETH Zurich.
    13. Arnade, Carlos A., 1992. "Productivity of Brazilian Agriculture: Measurement and Uses," Staff Reports 278673, United States Department of Agriculture, Economic Research Service.
    14. Targetti, Stefano & Viaggi, Davide & Cuming, David & Sarthou, J.P. & Choisis, J.P., "undated". "Assessing the costs of measuring biodiversity: methodological and empirical issues," 120th Seminar, September 2-4, 2010, Chania, Crete 109414, European Association of Agricultural Economists.
    15. Coleman, Jane A. & Shaik, Saleem, 2009. "Time-Varying Estimation of Crop Insurance Program in Altering North Dakota Farm Economic Structure," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49516, Agricultural and Applied Economics Association.
    16. Renwick, Alan W. & Revoredo-Giha, Cesar & Reader, Mark A., 2005. "Uk Sugar Beet Farm Productivity Under Different Reform Scenarios: A Farm Level Analysis," Environmental Economy and Policy Research Discussion Papers 31936, University of Cambridge, Department of Land Economy.
    17. Bailey, Alastair & Irz, Xavier T. & Balcombe, Kelvin George, 2003. "An Appliation Of The Stochastic Latent Variable Approach To The Correction Of Sector Level Tfp Calculations In The Face Of Biased Technological Change," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25842, International Association of Agricultural Economists.
    18. Lofgren, Hans & Robinson, Sherman, 1997. "The mixed-complementary approach to specifying agricultural supply in computable general equilibrium models:," TMD discussion papers 20, International Food Policy Research Institute (IFPRI).
    19. Rasmussen, Svend, 2003. "Criteria for optimal production under uncertainty. The state-contingent approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), pages 1-30.
    20. Ma, Chunbo & Stern, David I., 2016. "Long-run estimates of interfuel and interfactor elasticities," Resource and Energy Economics, Elsevier, vol. 46(C), pages 114-130.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:forpol:v:10:y:2008:i:6:p:386-399. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/forpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.