IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i11p6030-d563203.html
   My bibliography  Save this article

Impacts of the FLEGT Action Plan and the EU Timber Regulation on EU Trade in Timber Product

Author

Listed:
  • Paul Rougieux

    (European Commission, Joint Research Center (JRC), Directorate D—Sustainable Resources, Bio-Economy, Via E. Fermi 2749, I-21027 Ispra, Italy)

  • Ragnar Jonsson

    (European Commission, Joint Research Center (JRC), Directorate D—Sustainable Resources, Bio-Economy, Via E. Fermi 2749, I-21027 Ispra, Italy)

Abstract

The EU Timber Regulation (EUTR) is a key element in the efforts of the European Union to curb the trade in illegal timber products. This study helps to remedy the lack of systematic, statistical analysis of the EUTR’s potential impacts on international trade in timber products. Using cointegration intervention—or shock—models we quantify potential shifts in import prices and quantities of tropical hardwood lumber and oak lumber after the entry into effect of the EUTR. We further estimate import demand models to assess the relation between temperate and tropical hardwood products and whether there was a structural change in demand elasticities after the entry into force of the EUTR. The shock model analysis indicates, for most of the bilateral trade flows where we observe cointegration and a significant shock variable, increasing import prices and decreasing import quantities of tropical hardwood lumber following the EUTR start date, consistent with a contraction of the supply of tropical timber. The results of the import demand models do not give a clear indication as to whether oak lumber is a complementary or substitute product for tropical hardwood lumber, and there are no clear signs of structural changes in demand elasticities. Aside from the analysis, an important contribution of the paper is the procedure for building a long and homogeneous time series of tropical hardwood lumber.

Suggested Citation

  • Paul Rougieux & Ragnar Jonsson, 2021. "Impacts of the FLEGT Action Plan and the EU Timber Regulation on EU Trade in Timber Product," Sustainability, MDPI, vol. 13(11), pages 1-26, May.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:11:p:6030-:d:563203
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/11/6030/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/11/6030/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Prestemon, Jeffrey P., 2015. "The impacts of the Lacey Act Amendment of 2008 on U.S. hardwood lumber and hardwood plywood imports," Forest Policy and Economics, Elsevier, vol. 50(C), pages 31-44.
    2. M. L. Chas-Amil & J. Buongiorno, 2000. "The demand for paper and paperboard: econometric models for the European Union," Applied Economics, Taylor & Francis Journals, vol. 32(8), pages 987-999.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kim, Ki-Dong & Shim, Gyuhun & Choi, Hyun-Im & Kim, Dong-Hyun, 2023. "Effect of the timber legality requirement system on lumber trade: focusing on EUTR and Lacey Act," LSE Research Online Documents on Economics 121106, London School of Economics and Political Science, LSE Library.
    2. Apeti, Ablam Estel & N’Doua, Bossoma Doriane, 2023. "The impact of timber regulations on timber and timber product trade," Ecological Economics, Elsevier, vol. 213(C).
    3. Prasada, Imade Yoga & Nugroho, Agus Dwi & Lakner, Zoltan, 2022. "Impact of the FLEGT license on Indonesian plywood competitiveness in the European Union," Forest Policy and Economics, Elsevier, vol. 144(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Umanath Malaiarasan & R. Paramasivam & K. Thomas Felix & S. J. Balaji, 2020. "Simultaneous equation model for Indian sugar sector," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(1), pages 113-141, June.
    2. Kadam, Parag & Dwivedi, Puneet & Karnatz, Caroline, 2021. "Mapping convergence of sustainable forest management systems: Comparing three protocols and two certification schemes for ascertaining the trends in global forest governance," Forest Policy and Economics, Elsevier, vol. 133(C).
    3. Cameron Hepburn & John Quah & Robert Ritz, 2006. "Emissions Trading and Profit-Neutral Grandfathering," Economics Series Working Papers 295, University of Oxford, Department of Economics.
    4. Apeti, Ablam Estel & N’Doua, Bossoma Doriane, 2023. "The impact of timber regulations on timber and timber product trade," Ecological Economics, Elsevier, vol. 213(C).
    5. Maarit Kallio & Markku Kallio, 2002. "Nonparametric Methods for Evaluating Economic Efficiency and Imperfect Competition," Journal of Productivity Analysis, Springer, vol. 18(2), pages 171-189, September.
    6. Michinaka, Tetsuya & Tachibana, Satoshi & Turner, James A., 2011. "Estimating price and income elasticities of demand for forest products: Cluster analysis used as a tool in grouping," Forest Policy and Economics, Elsevier, vol. 13(6), pages 435-445, July.
    7. Meleo, Linda, 2014. "On the determinants of industrial competitiveness: The European Union emission trading scheme and the Italian paper industry," Energy Policy, Elsevier, vol. 74(C), pages 535-546.
    8. Cela, Enian & Kaneko, Shinji, 2011. "Determining the effectiveness of the Danish packaging tax policy: The case of paper and paperboard packaging imports," Resources, Conservation & Recycling, Elsevier, vol. 55(9), pages 836-841.
    9. Buongiorno, Joseph, 2019. "Country-specific demand elasticities for forest products: Estimation method and consequences for long term projections," Forest Policy and Economics, Elsevier, vol. 106(C), pages 1-1.
    10. Daigneault, Adam & Johnston, Craig & Korosuo, Anu & Baker, Justin S. & Forsell, Nicklas & Prestemon, Jeffrey P. & Abt, Robert C., 2019. "Developing Detailed Shared Socioeconomic Pathway (SSP) Narratives for the Global Forest Sector," Journal of Forest Economics, now publishers, vol. 34(1-2), pages 7-45, August.
    11. Raghbendra Jha & U. N. Bhati, 2008. "Economic Determinants of Newsprint Consumption in India: A Time Series Analysis," Palgrave Macmillan Books, in: Raghbendra Jha (ed.), The Indian Economy Sixty Years After Independence, chapter 17, pages 288-298, Palgrave Macmillan.
    12. Kuuluvainen, Jari & Korhonen, Jaana & Wang, Lanhui & Toppinen, Anne, 2021. "Wood market cartel in Finland 1997–2004: Analyzing price effects using the indicator approach," Forest Policy and Economics, Elsevier, vol. 124(C).
    13. Andres, Luis & Zentner, Alejandro & Zentner, Joaquin, 2014. "Measuring the effect of internet adoption on paper consumption," Policy Research Working Paper Series 6965, The World Bank.
    14. Lauri, Pekka & Kallio, A. Maarit I. & Schneider, Uwe A., 2012. "Price of CO2 emissions and use of wood in Europe," Forest Policy and Economics, Elsevier, vol. 15(C), pages 123-131.
    15. Li, Haizheng & LUO, Jifeng & MCCARTHY, Patrick, 2006. "Economic transition and demand pattern: Evidence from China's paper and paperboard industry," China Economic Review, Elsevier, vol. 17(3), pages 321-336.
    16. Bolkesjø, Torjus Folsland & Solberg, Birger & Wangen, Knut Reidar, 2007. "Heterogeneity in nonindustrial private roundwood supply: Lessons from a large panel of forest owners," Journal of Forest Economics, Elsevier, vol. 13(1), pages 7-28, May.
    17. 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.
    18. Zhang, Chao & Chen, Jining & Wen, Zongguo, 2012. "Alternative policy assessment for water pollution control in China's pulp and paper industry," Resources, Conservation & Recycling, Elsevier, vol. 66(C), pages 15-26.
    19. Li, Haizheng & Luo, Jifeng, 2008. "Industry consolidation and price in the US linerboard industry," Journal of Forest Economics, Elsevier, vol. 14(2), pages 93-115, April.
    20. Lovrić, Marko & Da Re, Riccardo & Vidale, Enrico & Pettenella, Davide & Mavsar, Robert, 2018. "Social network analysis as a tool for the analysis of international trade of wood and non-wood forest products," Forest Policy and Economics, Elsevier, vol. 86(C), pages 45-66.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:13:y:2021:i:11:p:6030-:d:563203. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.