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The impact of recycling on the long‐run forestry

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  • Didier Tatoutchoup
  • Gérard Gaudet

Abstract

Interest in recycling of forest products has grown in recent years, one of the goals being to conserve trees or possibly increase their number to compensate for positive externalities generated by the forest and neglected by the market. This paper explores the issue as to whether recycling is an appropriate measure to attain such a goal. We do this by considering the problem of the private owner of an area of land, who, acting as a price taker, decides how to allocate his land over time between forestry and some other use, and at what age to harvest the forest area chosen. Once the forest is cut, he makes a new land allocation decision and replants. He does so indefinitely, in a Faustmann‐like framework. The wood from the harvest is transformed into a final product that is partly recycled into a substitute for the virgin wood, so that past output affects the current price. We show that in such a context, increasing the rate of recycling will result in less area being devoted to forestry. It will also have the effect of increasing the harvest age of the forest, as long as the planting cost is positive. The net effect on the flow of virgin wood being harvested to supply the market will as a result be ambiguous. An important point, however, is that recycling will result in fewer trees in the long run, not more. It would therefore be best to resort to other means if the goal is to conserve the area devoted to forestry. L'un des principaux arguments utilisés pour favoriser le recyclage des produits de la forêt est que cela augmenterait l'aire dédiée à la forêt, compensant ainsi pour les effets externes positifs de la forêt que négligerait le marché. Le but de ce papier est d'étudier dans quelle mesure la promotion du recyclage est un instrument approprié pour atteindre un tel objectif. Pour ce faire, nous modélisons le comportement d'un propriétaire privé représentatif qui doit décider de l'allocation de sa terre entre la forêt et une autre utilisation, et de l'âge de coupe de la partie allouée à la forêt. Une fois les arbres coupés, il prend une nouvelle décision d'allocation de sa terre et reboise. Le bois récolté est transformé en un produit final qui est en partie recyclé en un substitut au produit primaire de la coupe, de sorte que le prix courant dépend de la production passée. Nous montrons qu'accroître le taux de recyclage a pour résultat qu'une plus faible surface sera allouée à la forêt à long terme. Ceci aura aussi pour effet d'accroître l'âge de coupe de la forêt. L'effet net sur le flux de bois coupé pour approvisionner le marché sera ambigu. Le point important, cependant, est que le recyclage résultera en un plus petit et non un plus grand stock d'arbres à long terme. Il vaudrait donc mieux recourir à d'autres moyens si l'objectif est d'accroître le stock d'arbre.

Suggested Citation

  • Didier Tatoutchoup & Gérard Gaudet, 2011. "The impact of recycling on the long‐run forestry," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 44(3), pages 804-813, August.
  • Handle: RePEc:wly:canjec:v:44:y:2011:i:3:p:804-813
    DOI: 10.1111/j.1540-5982.2011.01655.x
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    References listed on IDEAS

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    1. J. C. Burgess, 1998. "The economics of tropical forest land use options," Chapters, in: The Economics of Environment and Development, chapter 11, pages 223-253, Edward Elgar Publishing.
    2. Simeon K. Ehui & Thomas W. Hertel, 1989. "Deforestation and Agricultural Productivity in the Côte d'Ivoire," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 703-711.
    3. Ehui, Simeon K. & Hertel, Thomas W. & Preckel, Paul V., 1990. "Forest resource depletion, soil dynamics, and agricultural productivity in the tropics," Journal of Environmental Economics and Management, Elsevier, vol. 18(2), pages 136-154, March.
    4. Hartwick, John M. & Van Long, Ngo & Tian, Huilan, 2001. "Deforestation and Development in a Small Open Economy," Journal of Environmental Economics and Management, Elsevier, vol. 41(3), pages 235-251, May.
    5. Darby, Michael R, 1973. "Paper Recycling and the Stock of Trees," Journal of Political Economy, University of Chicago Press, vol. 81(5), pages 1253-1255, Sept.-Oct.
    6. Rigoberto A. Lopez & Farhed A. Shah & Marilyn A. Altobello, 1994. "Amenity Benefits and the Optimal Allocation of Land," Land Economics, University of Wisconsin Press, vol. 70(1), pages 53-62.
    7. McConnell, Kenneth E., 1989. "The Optimal Quantity Of Land In Agriculture," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 18(2), pages 1-10, October.
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    Cited by:

    1. Etienne Lorang & Antonello Lobianco & Philippe Delacote, 2023. "Increasing Paper and Cardboard Recycling: Impacts on the Forest Sector and Carbon Emissions," Post-Print hal-03832461, HAL.
    2. Etienne Lorang & Antonello Lobianco & Philippe Delacote, 2021. "Sectoral, resource and carbon impacts of increased paper and cardboard recycling," Working Papers 2021.12, FAERE - French Association of Environmental and Resource Economists.
    3. repec:hal:journl:hal-04690101 is not listed on IDEAS
    4. Tatoutchoup, Francis Didier, 2016. "Optimal rate of paper recycling," Forest Policy and Economics, Elsevier, vol. 73(C), pages 264-269.

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