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Wood trade responses to ecological rehabilitation program: Evidence from China's new logging ban in natural forests

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  • Zhang, Ying
  • Chen, Shuai

Abstract

This study examines the wood trade in response to China's new logging ban policy in natural forests (LBNF). Our identification is based on a triple-difference (DDD) strategy, in which the variations in the staggered policy implementation with region and time, together with the different trade responses between forest products, are jointly exploited. Our estimates show that the LBNF simulates an additional solid wood import by 15.2%, while the wood export and trade in other wood-related products were not affected. Heterogeneous analyses reveal that the growth in wood imports is mainly from low-income countries with less stable trade relations with China, which indicates a very limited potential for the future global market and the rising risk of China's wood supply. Unlike the generally optimistic forecasts in previous studies, our findings update the expectation under the new policy shock and restate more practical actions to promote domestic wood supply in China.

Suggested Citation

  • Zhang, Ying & Chen, Shuai, 2021. "Wood trade responses to ecological rehabilitation program: Evidence from China's new logging ban in natural forests," Forest Policy and Economics, Elsevier, vol. 122(C).
  • Handle: RePEc:eee:forpol:v:122:y:2021:i:c:s1389934120306651
    DOI: 10.1016/j.forpol.2020.102339
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    4. Jiping Sheng & Xiaoge Gao & Zhao Zhang, 2023. "Sustainability of Forest Development in China from the Perspective of the Illegal Logging Trade," Sustainability, MDPI, vol. 15(16), pages 1-20, August.
    5. Fischer, Richard & Lippe, Melvin & Dolom, Priscilla & Kalaba, Felix Kanungwe & Tamayo, Fabian & Torres, Bolier, 2023. "Effectiveness of policy instrument mixes for forest conservation in the tropics – Stakeholder perceptions from Ecuador, the Philippines and Zambia," Land Use Policy, Elsevier, vol. 127(C).
    6. Zhao, Jiacheng & Liu, Jinlong & Giessen, Lukas, 2023. "How China adopted eco-friendly forest development: Lens of the dual-track mechanism," Forest Policy and Economics, Elsevier, vol. 149(C).
    7. Liu, Shilei & Xia, Jun, 2021. "Forest harvesting restriction and forest restoration in China," Forest Policy and Economics, Elsevier, vol. 129(C).
    8. Hao Chen & Juanjuan Cao & Hongge Zhu & Yufang Wang, 2022. "Understanding Household Vulnerability and Relative Poverty in Forestry Transition: A Study on Forestry-Worker Families in China’s Greater Khingan Mountains State-Owned Forest Region," Sustainability, MDPI, vol. 14(9), pages 1-18, April.

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