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Estimating Armington elasticities for sawnwood and application to the French Forest Sector Model

Author

Listed:
  • Alexandre Sauquet

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

  • Franck Lecocq

    (LEF - Laboratoire d'Economie Forestière - AgroParisTech - INRA - Institut National de la Recherche Agronomique)

  • Philippe Delacote

    (LEF - Laboratoire d'Economie Forestière - AgroParisTech - INRA - Institut National de la Recherche Agronomique)

  • Sylvain Caurla

    (LEF - Laboratoire d'Economie Forestière - AgroParisTech - INRA - Institut National de la Recherche Agronomique)

  • Ahmed Barkaoui

    (LEF - Laboratoire d'Economie Forestière - AgroParisTech - INRA - Institut National de la Recherche Agronomique)

  • Serge Garcia

    (LEF - Laboratoire d'Economie Forestière - AgroParisTech - INRA - Institut National de la Recherche Agronomique)

Abstract

Domestic and foreign forest products consumptions are considered imperfectly substitutable in the French Forest Sector Model (FFSM). This assumption is justified by product heterogeneities that depend on production places, by the consumers habits or by the market structure. It leads us to implement the international trade in the FFSM via the Armington's theory of the demand for products distinguished by place of production. In this paper we propose a calibration of Armingston's elasticities of substitution between French and foreign forest products. System-GMM estimators are applied to identify robust parameters using a panel data from France customs service.

Suggested Citation

  • Alexandre Sauquet & Franck Lecocq & Philippe Delacote & Sylvain Caurla & Ahmed Barkaoui & Serge Garcia, 2011. "Estimating Armington elasticities for sawnwood and application to the French Forest Sector Model," Post-Print hal-01018987, HAL.
  • Handle: RePEc:hal:journl:hal-01018987
    DOI: 10.1016/j.reseneeco.2011.04.001
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01018987
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    1. Sylvain Caurla & Philippe Delacote & Franck Lecocq & Ahmed Barkaoui, 2009. "Fuelwood consumption, restrictions about resource availability and public policies: impacts on the French forest sector," Working Papers - Cahiers du LEF 2009-03, Laboratoire d'Economie Forestiere, AgroParisTech-INRA.
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    12. Sylvain Caurla & Franck Lecocq & Philippe Delacote & Ahmed Barkaoui, 2010. "The French Forest Sector Model: version 1.0. Presentation and theorical foundations," Working Papers - Cahiers du LEF 2010-04, Laboratoire d'Economie Forestiere, AgroParisTech-INRA.
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    Cited by:

    1. Bajzik, Jozef & Havranek, Tomas & Irsova, Zuzana & Schwarz, Jiri, 2019. "Estimating the Armington Elasticity: The Importance of Data Choice and Publication Bias," MPRA Paper 95031, University Library of Munich, Germany.
    2. Caurla, Sylvain & Delacote, Philippe & Lecocq, Franck & Barkaoui, Ahmed, 2013. "Stimulating fuelwood consumption through public policies: An assessment of economic and resource impacts based on the French Forest Sector Model," Energy Policy, Elsevier, vol. 63(C), pages 338-347.
    3. 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.
    4. Latta, Gregory S. & Sjølie, Hanne K. & Solberg, Birger, 2013. "A review of recent developments and applications of partial equilibrium models of the forest sector," Journal of Forest Economics, Elsevier, vol. 19(4), pages 350-360.
    5. Lobianco, Antonello & Delacote, Philippe & Caurla, Sylvain & Barkaoui, Ahmed, 2015. "The importance of introducing spatial heterogeneity in bio-economic forest models: Insights gleaned from FFSM++," Ecological Modelling, Elsevier, vol. 309, pages 82-92.
    6. Bajzik, Josef & Havranek, Tomas & Irsova, Zuzana & Schwarz, Jiri, 2020. "Estimating the Armington elasticity: The importance of study design and publication bias," Journal of International Economics, Elsevier, vol. 127(C).
    7. Hurmekoski, Elias & Hetemäki, Lauri & Linden, Mika, 2015. "Factors affecting sawnwood consumption in Europe," Forest Policy and Economics, Elsevier, vol. 50(C), pages 236-248.
    8. Lobianco, Antonello & Caurla, Sylvain & Delacote, Philippe & Barkaoui, Ahmed, 2016. "Carbon mitigation potential of the French forest sector under threat of combined physical and market impacts due to climate change," Journal of Forest Economics, Elsevier, vol. 23(C), pages 4-26.
    9. Caurla, Sylvain & Bertrand, Vincent & Delacote, Philippe & Le Cadre, Elodie, 2018. "Heat or power: How to increase the use of energy wood at the lowest cost?," Energy Economics, Elsevier, vol. 75(C), pages 85-103.
    10. Caurla, Sylvain & Garcia, Serge & Niedzwiedz, Alexandra, 2015. "Store or export? An economic evaluation of financial compensation to forest sector after windstorm. The case of Hurricane Klaus," Forest Policy and Economics, Elsevier, vol. 61(C), pages 30-38.
    11. Josef Bajzik & Tomas Havranek & Zuzana Irsova & Jiri Schwarz, 2019. "The Elasticity of Substitution between Domestic and Foreign Goods: A Quantitative Survey," Working Papers 2019/12, Czech National Bank.
    12. Miguel Riviere & Sylvain Caurla, 2020. "Representations of the Forest Sector in Economic Models [Les représentations du secteur forestier dans les modèles économiques]," Post-Print hal-03088084, HAL.

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    More about this item

    Keywords

    business and economics; France; forest sector modeling; international timber trade; armington elasticities; environmental sciences and ecology; energy and fuels;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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