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Effects of the Free Trade Area of the Americas on Forest Resources

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  • Turner, James A.
  • Buongiorno, Joseph
  • Zhu, Shushuai
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    Abstract

    The effects of the Free Trade Area of the Americas (FTAA) agreement on the forest sectors and resources of member countries are investigated. A model of wood supply within the spatial partial-equilibrium Global Forest Products Model is developed to link international trade and deforestation. The direct effects of tariff changes and the indirect effects of income changes induced by trade liberalization are considered. The FTAA has a small positive impact on the region's forest resources. Higher harvests of industrial roundwood in most countries are offset by increased afforestation due to the income effect of trade liberalization (captured by the environmental Kuznets curve).

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    File URL: http://purl.umn.edu/10197
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    Bibliographic Info

    Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

    Volume (Year): 34 (2005)
    Issue (Month): 1 (April)
    Pages:

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    Handle: RePEc:ags:arerjl:10197

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    Web page: http://www.narea.org/
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    Related research

    Keywords: trade liberalization; international trade; forest resources; forest sector trade model; International Relations/Trade; Resource /Energy Economics and Policy;

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    1. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 1998. "Is Free Trade Good for the Environment?," NBER Working Papers 6707, National Bureau of Economic Research, Inc.
    2. Xinshen Diao & Eugenio Díaz-Bonilla & Sherman Robinson, 2003. "Scenarios for Trade Integration in the Americas," Economie Internationale, CEPII research center, issue 94-95, pages 33-51.
    3. Jeffrey J. Schott & Gary C. Hufbauer, 1999. "Whither the Free Trade Area of the Americas?," The World Economy, Wiley Blackwell, vol. 22(6), pages 765-782, 08.
    4. James Brander & M. Scott Taylor, 1997. "International Trade Between Consumer and Conservationist Countries," NBER Working Papers 6006, National Bureau of Economic Research, Inc.
    5. Mattson, Jeremy W. & Koo, Won W., 2003. "U.S. Agricultural Trade With Latin American Countries And Effects Of The Free Trade Area Of The Americas On Specific Commodities," Agribusiness & Applied Economics Report 23568, North Dakota State University, Department of Agribusiness and Applied Economics.
    6. Greenaway, David & Morgan, Wyn & Wright, Peter, 2002. "Trade liberalisation and growth in developing countries," Journal of Development Economics, Elsevier, vol. 67(1), pages 229-244, February.
    7. Fredriksson, P.G., 1999. "Trade, Global Policy, and the Environment," World Bank - Discussion Papers 402, World Bank.
    8. Amacher, Gregory S. & Hyde, William F. & Kanel, Keshav R., 1996. "Household fuelwood demand and supply in Nepal's tarai and mid-hills: Choice between cash outlays and labor opportunity," World Development, Elsevier, vol. 24(11), pages 1725-1736, November.
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