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An Integrated Model of Québec-Ontario-U.S. Northeast Softwood Lumber Markets

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  • Jean-Thomas Bernard
  • Luc Bouthillier
  • Jérôme Catimel
  • Nancy Gélinas

Abstract

We analyze an interregional softwood lumber trade model for the three main species (spruce, pine, and fir [SPF]) which are indigenous to Québec, Ontario, and the U.S. Northeast. Demand for SPF softwood lumber is price elastic in Ontario and the U.S. Northeast, but not in Québec. It is inelastic with respect to residential construction. Supply price elasticities are less than one. Policy instruments such as exchange rate, export taxes, Canadian federal sales tax, and cost of logs change exports and imports but with minor effects on prices. Export (import) duties are more effective in redirecting trade than is a stumpage fee applied by the provinces. Copyright 1997, Oxford University Press.

Suggested Citation

  • Jean-Thomas Bernard & Luc Bouthillier & Jérôme Catimel & Nancy Gélinas, 1997. "An Integrated Model of Québec-Ontario-U.S. Northeast Softwood Lumber Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 987-1000.
    • Handle: RePEc:oup:ajagec:v:79:y:1997:i:3:p:987-1000
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    File URL: http://hdl.handle.net/10.2307/1244438
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    Cited by:

    1. Mutuc, Maria Erlinda M. & Rejesus, Roderick M. & Pan, Suwen & Yorobe, Jose M., 2012. "Impact Assessment of Bt Corn Adoption in the Philippines," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(1), pages 117-135, February.
    2. Zhang, Han & Zhao, Qing & Kuuluvainen, Jari & Wang, Changhai & Li, Shiping, 2015. "Determinants of China's lumber import: A bounds test for cointegration with monthly data," Journal of Forest Economics, Elsevier, vol. 21(4), pages 269-282.
    3. Daniels, Jean M., 2010. "Assessing the lumber manufacturing sector in western Washington," Forest Policy and Economics, Elsevier, vol. 12(2), pages 129-135, February.
    4. Devadoss, Stephen, 2006. "Is There an End to U.S.-Canadian Softwood Lumber Disputes?," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 38(1), pages 1-17, April.
    5. Song, Nianfu & Chang, Sun Joseph & Aguilar, Francisco X., 2011. "U.S. softwood lumber demand and supply estimation using cointegration in dynamic equations," Journal of Forest Economics, Elsevier, vol. 17(1), pages 19-33, January.
    6. Devadoss, Stephen, 2008. "An Evaluation of Canadian and U.S. Policies of Log and Lumber Markets," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(1), pages 1-14, April.

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