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Is Free Trade the End All Be All? The Case of Log Exports

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  • van Kooten, G. Cornelis

Abstract

The government of British Columbia imposes restrictions on the export of logs from public and private forestlands, primarily to promote local processing and associated employment benefits. Economists wholeheartedly oppose BC’s export restrictions, arguing that BC’s citizens are worse off as a result of the government’s measures. In this paper, it is shown that, while free trade in logs might well maximize global wellbeing, it might not necessarily result in the greatest benefit to British Columbia. Indeed, both economic theory and a follow-up numerical analysis indicate that some restrictions on the export of logs can lead to higher welfare for BC than free trade.

Suggested Citation

  • van Kooten, G. Cornelis, 2014. "Is Free Trade the End All Be All? The Case of Log Exports," Working Papers 162236, University of Victoria, Resource Economics and Policy.
    • Handle: RePEc:ags:uvicwp:162236
    DOI: 10.22004/ag.econ.162236
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    File URL: https://ageconsearch.umn.edu/record/162236/files/WorkingPaper2014-01.pdf
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    References listed on IDEAS

    as
    1. Devadoss, Stephen, 2008. "An Evaluation of Canadian and U.S. Policies of Log and Lumber Markets," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 40(1), pages 1-14, April.
    2. Devadoss, Stephen, 2008. "An Evaluation of Canadian and U.S. Policies of Log and Lumber Markets," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 171-184, April.
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    Cited by:

    1. Joel Wood, 2015. "When a ban is not a ban: The case of British Columbia's log export restrictions," Economics Bulletin, AccessEcon, vol. 35(2), pages 1071-1075.

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    More about this item

    Keywords

    International Relations/Trade; Resource /Energy Economics and Policy;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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