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An Economic Analysis of Mountain Pine Beetle Impact in a Global Context

Author

Listed:
  • Abbott, Brant
  • Stennes, Brad
  • van Kooten, G. Cornelis

Abstract

The economic effects of the mountain pine beetle outbreak in British Columbia are simulated using a multi-region spatial price equilibrium model coupled with a stochastic dynamic updating procedure. The simulation captures expected changes in the B.C. timber supply, growth of plantation forests in the southern hemisphere and an escalating Russian log export tax. The results indicate lumber and log prices will rise in B.C., offsetting some of the economic loss to timber producers. However, on net producers in the B.C. forest industry will experience a decrease in economic surplus.

Suggested Citation

  • Abbott, Brant & Stennes, Brad & van Kooten, G. Cornelis, 2008. "An Economic Analysis of Mountain Pine Beetle Impact in a Global Context," Working Papers 37051, University of Victoria, Resource Economics and Policy.
    • Handle: RePEc:ags:uvicwp:37051
    DOI: 10.22004/ag.econ.37051
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    Cited by:

    1. Charles Sims & David Aadland & David Finnoff & James Powell, 2013. "How Ecosystem Service Provision Can Increase Forest Mortality from Insect Outbreaks," Land Economics, University of Wisconsin Press, vol. 89(1), pages 154-176.
    2. Sims, Charles & Aadland, David & Finnoff, David, 2010. "A dynamic bioeconomic analysis of mountain pine beetle epidemics," Journal of Economic Dynamics and Control, Elsevier, vol. 34(12), pages 2407-2419, December.

    More about this item

    Keywords

    Environmental Economics and Policy; International Relations/Trade;

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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