Decisions to Harvest and Spatial Interactions

Eric Kere, Serge Garcia and Arnaud Dragicevic
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Arnaud Dragicevic: Chaire Forêts pour Demain, AgroParisTech-Office National des Forêts

No 2015-08, Working Papers - Cahiers du LEF from Laboratoire d'Economie Forestiere, AgroParisTech-INRA

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.

Keywords: Timber harvesting; Forest amenities; Spatial interactions; Sample selection (search for similar items in EconPapers)
JEL-codes: C61 C63 C81 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2015-08, Revised 2015-08
New Economics Papers: this item is included in nep-agr and nep-ger
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http://www6.nancy.inra.fr/lef/Cahiers-du-LEF/2015/2015-08 First version, 2010

Related works:
Working Paper: Decisions to harvest and spatial interactions (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:lef:wpaper:2015-08

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