Estimating the Long-Run Impact of Forest Fires on the Eucalyptus Timber Supply in Galicia, Spain
AbstractUsing annual data, we have estimated the timber harvest of eucalyptus in the region of Galicia (Spain). The explanatory variables considered were price, pulp exports, and salvage timber. The latter variable was used as a proxy for forest fires. The problems related to spurious regression were addressed by applying the bounds testing approach to cointegration, and confidence intervals were constructed using the bootstrap technique. The results indicate that pulp exports have a positive effect on the harvested timber volume. Moreover, we find that salvage timber positively affects the timber supply. This result indicates that there is no substitution between salvage timber and non-damaged timber. It also suggests that the natural expansion of the eucalyptus in Galicia compensates for the destruction caused by forest fires, avoiding supply shortages. On the other hand, and according to the economic law of supply, the timber price shows a negative effect.
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Bibliographic InfoPaper provided by Universidade de Vigo, Departamento de Economía Aplicada in its series Working Papers with number 1206.
Length: 24 pages
Date of creation: Sep 2012
Date of revision:
eucalyptus; forest fires; cointegration; ARDL; bootstrap;
Other versions of this item:
- González-Gómez, Manuel & Álvarez-Díaz, Marcos & Otero-Giráldez, María Soledad, 2013. "Estimating the long-run impact of forest fires on the eucalyptus timber supply in Galicia, Spain," Journal of Forest Economics, Elsevier, vol. 19(2), pages 149-161.
- NEP-AGR-2012-10-27 (Agricultural Economics)
- NEP-ALL-2012-10-27 (All new papers)
- NEP-ENV-2012-10-27 (Environmental Economics)
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