IDEAS home Printed from https://ideas.repec.org/a/now/jnljfe/112.00000546.html
   My bibliography  Save this article

Tree Planting Subsidies and Land Use Switching between Forestry and Agriculture in the US South

Author

Listed:
  • Bin Mei
  • David N. Wear
  • Yanshu Li

Abstract

A regime switching model based on real options shows that optimal land use switching boundaries are contingent upon the stochastic behavior (trend and volatility) of timberland and cropland returns, conversion costs, and return correlation. Using this modeling framework applied to timberland and cropland in the US South, tree planting subsidies are shown to increase forest area over baseline projections. However, timber supply feedbacks and partial eligibility for subsidies are shown to generate substantial benefit leakage. Given the context of market feedbacks it's not clear that tree planting subsidies alone are an effective policy instrument for expanding forest area.

Suggested Citation

  • Bin Mei & David N. Wear & Yanshu Li, 2022. "Tree Planting Subsidies and Land Use Switching between Forestry and Agriculture in the US South," Journal of Forest Economics, now publishers, vol. 37(3), pages 237-257, July.
    • Handle: RePEc:now:jnljfe:112.00000546
    DOI: 10.1561/112.00000546
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1561/112.00000546
    Download Restriction: no
    File URL: https://libkey.io/10.1561/112.00000546?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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:now:jnljfe:112.00000546. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Lucy Wiseman (email available below). General contact details of provider: http://www.nowpublishers.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.