Explaining wood stock increases in times of decreasing profitability: A statistical analysis
The aim of this paper is to analyze the statistical relationship between the yearly timber supply of Maritime Pine and Eucalyptus and their market prices in Galicia (northwest of Spain) during the 1985-2007 period. The development of profitability and growing stock is similar for both species in the forestry sector of this region. Specifically, we observe that forest owners decide to accumulate growing stock in spite of decreasing profitability, due to the evolution of prices and costs. In this study, we attempt to explain statistically the forest owners' behavior using the Granger causality test and an analysis based on the cross-correlation functions. The statistical analysis between timber supply and market prices shows opposite results for both species. The increasing growing stock is due to a decrease in wood prices in the case of Pinus pinaster. Lower prices and less timber supply resulted in a higher accumulation of growing stock. On the contrary, this result does not hold for Eukaliptus globulus. In this case, a decrease in price does not statistically cause a reduction in timber supply. This may suggest that the accumulation of growing stock could be a consequence of subsidies, forest abandonment, and rapid natural regeneration of this species.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Denis Kwiatkowski & Peter C.B. Phillips & Peter Schmidt, 1991.
"Testing the Null Hypothesis of Stationarity Against the Alternative of a Unit Root: How Sure Are We That Economic Time Series Have a Unit Root?,"
Cowles Foundation Discussion Papers
979, Cowles Foundation for Research in Economics, Yale University.
- Kwiatkowski, Denis & Phillips, Peter C. B. & Schmidt, Peter & Shin, Yongcheol, 1992. "Testing the null hypothesis of stationarity against the alternative of a unit root : How sure are we that economic time series have a unit root?," Journal of Econometrics, Elsevier, vol. 54(1-3), pages 159-178.
- Tom Doan, . "KPSS: RATS procedure to perform KPSS (Kwiatowski, Phillips, Schmidt, and Shin) stationarity test," Statistical Software Components RTS00100, Boston College Department of Economics.
- Kwiatkowski, D. & Phillips, P.C.B. & Schmidt, P., 1990. "Testing the Null Hypothesis of Stationarity Against the Alternative of Unit Root : How Sure are we that Economic Time Series have a Unit Root?," Papers 8905, Michigan State - Econometrics and Economic Theory.
- Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-38, July.
- Moog, Martin & Borchert, Herbert, 2001. "Increasing rotation periods during a time of decreasing profitability of forestry -- a paradox?," Forest Policy and Economics, Elsevier, vol. 2(2), pages 101-116, June.
When requesting a correction, please mention this item's handle: RePEc:eee:forpol:v:13:y:2011:i:3:p:176-183. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.