Forest-Mill Integration: A Transaction Costs Perspective

Kurt Niquidet and Glen O'Kelly

No 37086, Working Papers from University of Victoria, Resource Economics and Policy

Abstract: In Canada, where public ownership of forestland is prevalent, a central decision facing policy makers is how to allocate timber resources to private forest companies. Debates tend to focus around what proportion of the annual harvest should be devoted to markets opposed to long-term contracts. To give a guide to policy makers, we surveyed forest firms from New Zealand and Sweden where this decision is based purely on a commercial basis. On average, mills source fifty percent of their fibre from the market. However, using a fractional logit model, we test whether theories from transaction cost economics influence this decision. Results are consistent with transaction cost economics; firms decrease the proportion of fibre sourced from a market with increasing fibre specificity, capital intensity, and uncertainty.

Keywords: Environmental Economics and Policy; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 28
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/37086/files/WorkingPaper2008-07.pdf (application/pdf)

Related works:
Journal Article: Forest-mill integration: A transaction cost perspective (2010)
Working Paper: Forest-Mill Integration: A Transaction Costs Perspective (2008)
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:ags:uvicwp:37086

DOI: 10.22004/ag.econ.37086

Access Statistics for this paper

More papers in Working Papers from University of Victoria, Resource Economics and Policy
Bibliographic data for series maintained by AgEcon Search ().