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The Impact of Sustainable Forest Management (SFM) Practices on Primary Timber-Based Production in Peninsular Malaysia

Author

Listed:
  • Noraida, A.W.

    (Department of Economics Faculty of Economics and Management Universiti Putra Malaysia 43400 Serdang Selangor MALAYSIA)

  • Abdul-Rahim, A.S.

    (Department of Economics Faculty of Economics and Management Universiti Putra Malaysia 43400 Serdang Selangor MALAYSIA)

  • Othman, Mohd

    (Department of Economics Faculty of Economics and Management Universiti Putra Malaysia 43400 Serdang Selangor MALAYSIA)

Abstract

This paper investigates the impact of Sustainable Forest Management (SFM) practices on primary timber-based production in Peninsular Malaysia that is complying with the SFM practice scenarios. The Autoregressive Distributed Lagged (ARDL) Bounds Testing Approach have been used to analyze time series data from 1980 to 2012. Four scenarios were investigated: (i) 24% reduction in the harvested area, (ii) 25%increase in the domestic price of commodities, (iii) 47%increase in input costs, and (iv) a combination of Scenarios i, ii, and iii. The results reveal that sawn timber production is positively affected by the SFM practices; these practices vary between veneer and plywood production. Consequently, the producer can enhance sawn timber production after imposing the SFM practice scenario. The SFM practice scenario would generate the sustainable growth of the timber-based industry and help to enhance Peninsular Malaysia’s forest conservation goals.

Suggested Citation

  • Noraida, A.W. & Abdul-Rahim, A.S. & Othman, Mohd, 2017. "The Impact of Sustainable Forest Management (SFM) Practices on Primary Timber-Based Production in Peninsular Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 51(2), pages 143-154.
    • Handle: RePEc:ukm:jlekon:v:51:y:2017:i:2:p:143-154
    DOI: http://dx.doi.org/10.17576/JEM-2017-5001-12
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    References listed on IDEAS

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    4. Leppanen, Jussi & Linden, Mika & Uusivuori, Jussi & Pajuoja, Heikki, 2005. "The private cost and timber market implications of increasing strict forest conservation in Finland," Forest Policy and Economics, Elsevier, vol. 7(1), pages 71-83, January.
    5. Schwarzbauer, Peter & Rametsteiner, Ewald, 2001. "The impact of SFM-certification on forest product markets in Western Europe -- an analysis using a forest sector simulation model," Forest Policy and Economics, Elsevier, vol. 2(3-4), pages 241-256, July.
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