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Decisions to Harvest and Spatial Interactions

Author

Listed:
  • Eric N. Kéré

    () (CERDI-CNRS, Université d’Auvergne, 63000 Clermont-Ferrand, France)

  • Serge Garcia

    (Laboratoire d'Economie Forestière, INRA - AgroParisTech)

  • Arnaud Dragicevic

    (Chaire Forêts pour Demain, AgroParisTech-Office National des Forêts)

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.

Suggested Citation

  • Eric N. Kéré & Serge Garcia & Arnaud Dragicevic, 2015. "Decisions to Harvest and Spatial Interactions," Working Papers - Cahiers du LEF 2015-08, Laboratoire d'Economie Forestiere, AgroParisTech-INRA, revised Aug 2015.
  • Handle: RePEc:lef:wpaper:2015-08
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    File URL: http://www6.nancy.inra.fr/lef/Cahiers-du-LEF/2015/2015-08
    File Function: First version, 2010
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    More about this item

    Keywords

    Timber harvesting; Forest amenities; Spatial interactions; Sample selection;

    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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