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Decisions to harvest and spatial interactions

Author

Listed:
  • Eric Kere

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

  • Serge S. Garcia

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

  • Arnaud A. Dragicevic

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

Abstract

The objective of this paper is to analyze the influence of the intensity of spatial interactions on the behavior of non-industrial private forest (NIPF) owners and, by the ripple effect, its impact on the decisions to produce timber. We model the spatial interactions in form of a twostage game. We find that when timber harvesting dominates the production of amenities, neighbors’ decisions act as strategic complements. We then prove the existence of a unique Nash equilibrium and find that it reflects the magnitude of spatial correlations. Our econometric analysis suggests that the decisions on harvesting depend on the decisions descried in the neighborhood. In consequence, the policies aimed at increasing the timber harvesting could benefit from the spillover effect. Finally, our work confirms that NIPF owners make a tradeoff between timber harvesting and forest amenities production.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Eric Kere & Serge S. Garcia & Arnaud A. Dragicevic, 2014. "Decisions to harvest and spatial interactions," Post-Print hal-01628554, HAL.
    • Handle: RePEc:hal:journl:hal-01628554
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    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access

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