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The economic and environmental effects of an EU ban on illegal logging imports. Insights from a CGE assessment

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  • Bosello, Francesco
  • Parrado, Ramiro
  • Rosa, Renato

Abstract

The European Union (EU) is now discussing a legislation proposal to ban illegal timber from the EU market. We use the ICES model to estimate the reallocation of global demand and timber imports following the EU legislation. We aim to assess the economic impacts and measure the potential emission reduction resulting from the introduction of this policy. Results show that an EU ban targeting only log imports is not effective in reducing illegal logging, but its main effect is the removal of illegal logs from international markets. Additionally, the unilateral EU ban increases secondary wood production in illegal logging countries as their exports become relatively more competitive. Through this mechanism, part of the banned illegal timber will re-enter international trade flows ‘hidden’ as processed wood. Extending the ban to timber processed products eliminates this effect and reinforces direct carbon emissions reduction from logging activities.

Suggested Citation

  • Bosello, Francesco & Parrado, Ramiro & Rosa, Renato, 2013. "The economic and environmental effects of an EU ban on illegal logging imports. Insights from a CGE assessment," Environment and Development Economics, Cambridge University Press, vol. 18(2), pages 184-206, April.
    • Handle: RePEc:cup:endeec:v:18:y:2013:i:02:p:184-206_00
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    Cited by:

    1. Leipold, Sina, 2017. "How to move companies to source responsibly? German implementation of the European Timber Regulation between persuasion and coercion," Forest Policy and Economics, Elsevier, vol. 82(C), pages 41-51.
    2. Zamani, Omid & Chibanda, Craig & Pelikan, Janine, 2021. "Investigating Alternative Poultry Trade Policies in the Context of African Countries: Evidence from Ghana," 2021 Conference, August 17-31, 2021, Virtual 315173, International Association of Agricultural Economists.
    3. Guan, Z. & Gong, P. & Cao, J., 2014. "Governing Illegal Logging and the Comparative Advantage," 2014, Number 45, May 22-24, 2014, Uppsala, Sweden, Scandinavian Forest Economics: Proceedings of the Biennial Meeting of the Scandinavian Society of Forest Economics, vol. 2014(45), pages 1-8, December.
    4. Perez Blanco, C.D., 2018. "Waters run deep: A coupled Revealed Preference and CGE model to assess the economy-wide impacts of agricultural water buyback," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277028, International Association of Agricultural Economists.
    5. Zamani, Omid & Chibanda, Craig & Pelikan, Janine, 2020. "Tariff Escalation and Import Bans in the Economic Partnership Agreement between the EU and West Africa," Conference papers 333239, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    More about this item

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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