Effects of the Free Trade Area of the Americas on Forest Resources

James A. Turner, Joseph Buongiorno and Shushuai Zhu
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James A. Turner: New Zealand Forest Re-search Institute
Joseph Buongiorno: University ofWisconsin-Madison
Shushuai Zhu: University ofWisconsin-Madison

Agricultural and Resource Economics Review, 2005, vol. 34, issue 1, pages 104–118

Abstract: The effects of the Free Trade Area of the Americas (FTAA) agreement on the forest sectors and resources of member countries are investigated. A model of wood supply within the spatial partial-equilibrium Global Forest Products Model is developed to link international trade and deforestation. The direct effects of tariff changes and the indirect effects of income changes induced by trade liberalization are considered. The FTAA has a small positive impact on the region’s forest resources. Higher harvests of industrial roundwood in most countries are offset by increased afforestation due to the income effect of trade liberalization (captured by the environmental Kuznets curve).

Keywords: trade liberalization; international trade; forest resources; forest sector trade model (search for similar items in EconPapers)

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