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The impact of timber-sale tract, policy, and administrative characteristics on state stumpage prices: An econometric analysis

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  • Brown, Ross N.
  • Kilgore, Michael A.
  • Coggins, Jay S.
  • Blinn, Charles R.

Abstract

An econometric analysis was conducted to assess how tract, policy, and administrative factors of public timber sales influence willingness to pay for stumpage. To do so, we obtained an electronic database containing multiple years of MN DNR timber-sale records. Each record contained information on the timber sale's total appraised volume, species-product composition, tract acres, date of sale, date of sale expiration, method of sale, purchasing firm, and tract location. A total of 4,395 records of MN DNR timber tracts sold from 2001 to 2006 were analyzed. By incorporating physical, ecological, policy, and administrative factors of a timber sale, our model was able to explain approximately 63% of the variation in the natural log of stumpage prices. Sale-specific characteristics found to be significant drivers of stumpage prices are species-product composition, tract location, end-product market conditions, season of sale, harvestable volume density, length of the sale contract, seasonal operating restrictions, total appraised volume, and auction method.

Suggested Citation

  • Brown, Ross N. & Kilgore, Michael A. & Coggins, Jay S. & Blinn, Charles R., 2012. "The impact of timber-sale tract, policy, and administrative characteristics on state stumpage prices: An econometric analysis," Forest Policy and Economics, Elsevier, vol. 21(C), pages 71-80.
    • Handle: RePEc:eee:forpol:v:21:y:2012:i:c:p:71-80
    DOI: 10.1016/j.forpol.2011.10.001
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    References listed on IDEAS

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    Cited by:

    1. Han, Xiao & Kant, Shashi & Xie, Yi, 2018. "A spatial hedonic stumpage analysis of standing timber auctions in Jiangxi Province of China," Forest Policy and Economics, Elsevier, vol. 96(C), pages 63-74.
    2. Rönnqvist, Mikael & D'Amours, Sophie & Carle, Marc-André & Azouzi, Riadh, 2018. "Timber selling policies using bundle-based auction: The case of public forests in Québec," Forest Policy and Economics, Elsevier, vol. 96(C), pages 9-18.
    3. Silva, Bruno Kanieski & Cubbage, Frederick W. & Gonzalez, Ronalds & Abt, Robert C., 2019. "Assessing market power in the U.S. pulp and paper industry," Forest Policy and Economics, Elsevier, vol. 102(C), pages 138-150.
    4. Banaś, Jan & Utnik-Banaś, Katarzyna, 2021. "Evaluating a seasonal autoregressive moving average model with an exogenous variable for short-term timber price forecasting," Forest Policy and Economics, Elsevier, vol. 131(C).
    5. Asada, Raphael & Hurmekoski, Elias & Hoeben, Annechien Dirkje & Patacca, Marco & Stern, Tobias & Toppinen, Anne, 2023. "Resilient forest-based value chains? Econometric analysis of roundwood prices in five European countries in the era of natural disturbances," Forest Policy and Economics, Elsevier, vol. 153(C).
    6. 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).

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