Forest sector models for tropical countries - A case study of Colombia

Oscar Geovani Martínez-Cortés, Shashi Kant and Henrieta Isufllari

Forest Policy and Economics, 2024, vol. 169, issue C

Abstract: The evolution of Forest Sector Models (FSMs) since the 1960s has marked a significant advancement in forest economics and policy analysis. However, this development is limited to North America and Europe's nations; tropical countries, crucial for biodiversity, carbon storage, and deforestation, face a notable scarcity of FSMs, often attributed to the limited and fragmented nature of their forest sector data. The importance of unprocessed wood and sources of wood supply are also distinct in tropical countries. We address these issues by introducing a comprehensive framework to build FSMs tailored for tropical countries whose national accounts are aligned with United Nations standards. We demonstrate the applicability of our framework by constructing the Colombian Forest Sector Model (CFSM), a structural econometric partial equilibrium model. The CFSM includes five markets grouped in two market sub-models: one for unprocessed wood (firewood and industrial wood) linked to a forest plantations simulator, and other for manufactured wood products (wood, furniture, and pulp & paper). The model consists of 32 behavioral equations, explaining supply, consumption, exports and imports, and prices for consumption and trade for each market, plus 18 summation and market-clearing identities. Model estimation is based on 41 years (1975–2015) of data collected, organized, and transformed through a meticulous process. Rigorous validation confirms the CFSM's robustness and reliability. The model's application is demonstrated by estimating wood availability and impacts under several plantation expansion scenarios, and the monetary effects of expanding Colombia's wood products industry. The paper opens new frontiers of research in FSMs.

Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1389934124001953
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:forpol:v:169:y:2024:i:c:s1389934124001953

DOI: 10.1016/j.forpol.2024.103341

Access Statistics for this article

Forest Policy and Economics is currently edited by M. Krott

More articles in Forest Policy and Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().