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Technological Adaptation To Resource Scarcity In The U.S. Lumber Industry

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  • Stier, Jeffrey C.

Abstract

This paper provides an econometric investigation of the role of a renewable natural resource, sawlogs, in the production of lumber over the period 1950-1974. The economic scarcity of sawlogs is confirmed. Within a given production technology, the potential for substitution among capital, labor and sawlog inputs is greatly restricted but not impossible. Technological change has been strongly labor-saving but has had a negligible effect on wood requirements. Consequently, the real price of lumber has risen, stimulating development of substitute wood products. Continued decline of the industry is anticipated.

Suggested Citation

  • Stier, Jeffrey C., 1980. "Technological Adaptation To Resource Scarcity In The U.S. Lumber Industry," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 5(2), pages 1-12, December.
    • Handle: RePEc:ags:wjagec:32386
    DOI: 10.22004/ag.econ.32386
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    File URL: https://ageconsearch.umn.edu/record/32386/files/05020165.pdf
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    References listed on IDEAS

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    1. Binswanger, Hans P, 1974. "The Measurement of Technical Change Biases with Many Factors of Production," American Economic Review, American Economic Association, vol. 64(6), pages 964-976, December.
    2. Smith, V. Kerry, 1978. "Measuring natural resource scarcity: Theory and practice," Journal of Environmental Economics and Management, Elsevier, vol. 5(2), pages 150-171, June.
    3. Wills, John, 1979. "Technical change in the U.S. primary metals industry," Journal of Econometrics, Elsevier, vol. 10(1), pages 85-98, April.
    4. Berndt, Ernst R & Wood, David O, 1975. "Technology, Prices, and the Derived Demand for Energy," The Review of Economics and Statistics, MIT Press, vol. 57(3), pages 259-268, August.
    5. Pindyck, Robert S, 1979. "Interfuel Substitution and the Industrial Demand for Energy: An International Comparison," The Review of Economics and Statistics, MIT Press, vol. 61(2), pages 169-179, May.
    6. Hirofumi Uzawa, 1962. "Production Functions with Constant Elasticities of Substitution," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 29(4), pages 291-299.
    7. Humphrey, David Burras & Moroney, John R, 1975. "Substitution among Capital, Labor, and Natural Resource Products in American Manufacturing," Journal of Political Economy, University of Chicago Press, vol. 83(1), pages 57-82, February.
    8. Smith, V Kerry, 1979. "Natural Resource Scarcity: A Statistical Analysis," The Review of Economics and Statistics, MIT Press, vol. 61(3), pages 423-427, August.
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    Cited by:

    1. Daniels, Jean M., 2010. "Assessing the lumber manufacturing sector in western Washington," Forest Policy and Economics, Elsevier, vol. 12(2), pages 129-135, February.
    2. Lin, Ying & Zhang, Daowei, 2017. "Incidence of Russian log export tax: A vertical log-lumber model," Journal of Forest Economics, Elsevier, vol. 29(PB), pages 69-77.

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