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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

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).

Suggested Citation

  • Turner, James A. & Buongiorno, Joseph & Zhu, Shushuai, 2005. "Effects of the Free Trade Area of the Americas on Forest Resources," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(1), pages 104-118, April.
    • Handle: RePEc:cup:agrerw:v:34:y:2005:i:01:p:104-118_00
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    Cited by:

    1. Buongiorno, Joseph & Johnston, Craig & Zhu, Shushuai, 2017. "An assessment of gains and losses from international trade in the forest sector," Forest Policy and Economics, Elsevier, vol. 80(C), pages 209-217.

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