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The timber wars: the endangered species act, the northwest forest plan, and the political economy of timber management in the Pacific northwest

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  • Luke Petach

    (Belmont University)

Abstract

This paper evaluates the extent to which public interest or public choice rationales explain timber industry regulation in the Pacific Northwest. Two key regulations are examined: the listing of the Northern Spotted Owl (NSO) under the Endangered Species Act (ESA) in 1990, and the implementation of the Northwest Forest Plan (NWFP) in 1994. Support for the public interest theory of regulation relies on the assumption that (A) demand for environmental protection is driven by local populations directly impacted by regulation, (B) declining timber production is driven by technological factors unrelated to environmental policy, and (C) prevention of logging under timber regulations is effective at supporting ecological diversity and endangered populations. I argue there is little evidence to support any of these propositions. In contrast, evidence suggests that various interest groups benefitted significantly from the reduction in federal timber output resulting from environmental regulation, including owners of private timberlands—particularly institutional investors such as timberland investment management organizations (TIMOs) and timberland real-estate investment trusts (REITs)—and Southern timber producers, suggesting a “bootleggers and Baptists” explanation that fits within the public choice framework. Finally, I argue that even if one accepts the public interest rationale for timber regulation, regulation of the timber industry suffers from both knowledge and incentive problems that make it unlikely to succeed.

Suggested Citation

  • Luke Petach, 2024. "The timber wars: the endangered species act, the northwest forest plan, and the political economy of timber management in the Pacific northwest," Public Choice, Springer, vol. 198(1), pages 209-226, January.
  • Handle: RePEc:kap:pubcho:v:198:y:2024:i:1:d:10.1007_s11127-023-01123-3
    DOI: 10.1007/s11127-023-01123-3
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    References listed on IDEAS

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    1. Jeremy Horpedahl, 2021. "Bootleggers, Baptists and ballots: coalitions in Arkansas’ alcohol-legalization elections," Public Choice, Springer, vol. 188(1), pages 203-219, July.
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    Cited by:

    1. Deegen, Peter & Halbritter, Andreas, 2024. "The influence of the competition amongst pressure groups to provide ecosystem services on the optimal rotation length of forest stands," Forest Policy and Economics, Elsevier, vol. 167(C).

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    More about this item

    Keywords

    Public choice; Public interest; Timber; Endangered species act; Northwest forest plan; Northern spotted owl;
    All these keywords.

    JEL classification:

    • L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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