Scale of harvesting by non-industrial private forest landowners

We examine the intensity of harvesting decision by non-industrial landowners at the lowest price offer they deem acceptable, using a multiple bounded discrete choice stated preference approach that draws upon and connects two subfields of forestry, one identifying characteristics of landowners important to past harvesting or reforestation decisions, and another proposing how landowners evaluate price offers for forest harvesting decisions. Variables important to harvest intensity choices when the landowners find an acceptable price have only been considered for those landowners who actually have participated in harvesting markets, whereas here we examine the behavior of these individuals as well as those who are on the margin (i.e., have not harvested at prevailing current or past market prices). We show that harvest intensity depends critically on the extent of urbanization, indicated by the presence of structures on a parcel as well as forested tract size, along with landowner characteristics such as absenteeism and length of ownership. The results are useful for understanding the timber management behavior for a majority of landowners who may not harvest at prevailing prices, but may participate should prices reach a level acceptable to them, where this level is determined by individual preferences for standing timber resources.     

The potential and cost of increasing forest carbon sequestration in Sweden

This paper examines the potential and the cost of promoting forest carbon sequestration through a tax/subsidy to land owners for reducing/increasing carbon storage in their forests. We use a partial equilibrium model based on intertemporal optimization to estimate the impacts of carbon price (the tax/subsidy rate) on timber harvest volume and price in different time periods and on the change of forest carbon stock over time. The results show that a higher carbon price would lead to higher forest carbon stocks. The tax/subsidy induced annual net carbon sequestration is declining over time. The net carbon sequestration during 2015–2050 would increase by 30.2 to 218.3 million tonnes of CO₂, when carbon price increases from 170 SEK to 1428 SEK per tonne of CO₂. The associated cost, in terms of reduced total benefits of timber and other non-timber goods, ranges from 80 SEK to 105.8 SEK per tonne of CO₂. The change in carbon sequestration (as compared with the baseline case) beyond 2050 is small when carbon price is 680 SEK per tonne of CO₂ or lower. With a carbon price of 1428 SEK per tonne of CO₂, carbon sequestration will increase by 70 million tonnes of CO₂ from the baseline level during 2050-2070, and by 64 million tonnes during 2070–2170.     

Shadow pricing diversity in U. S. national forests

Tobit estimation of the market value of timber sales in national forests of North Carolina demonstrates the important effect of stand diversity on the formulation of bid prices for mixed-species timber tracts. The hedonic model generates a shadow price for diversity according to changes in bid prices, an effective shift in the demand curve for auctioned tracts due to stand diversity attributes. This approach contrasts with traditional shadow price analyses that focus on the supply effects of environmental constraints. Results are corrected for the effects of bidder participation, market conditions, production costs, and other stand attributes. Econometric results demonstrate that stand heterogeneity is a highly significant factor influencing the market value of timber sales from national forests of the Appalachian region. Greater heterogeneity results in lower bid prices for timber sales, indicating a positive shadow price for maintenance of stand diversity.     

Harvesting Choices and Timber Supply among Landowners in the Southern United States

The recent rise of institutional timberland ownership has led to a significant change in the structure and conduct of the timber industry in the United States. In this study, we apply a two‐period harvest model to assess the timber harvesting behavior of various landowners at the stand level by utilizing USDA Forest Service Forest Inventory and Analysis data for nine southern states. Forest industry and institutional timberland owners were found to be more likely to conduct partial and final harvests than nonindustrial private forest landowners. Aggregately, Timberland Investment Management Organizations were found to be most, and timberland Real Estate Investment Trusts to be least, price‐responsive among ownership groups.     

Genetically Modified Crops, Corporate Pricing Strategies, and Farmers' Adoption: The Case of Bt Cotton in Argentina

This article analyzes adoption and impacts of Bt cotton in Argentina against the background of monopoly pricing. Based on survey data, it is shown that the technology significantly reduces insecticide applications and increases yields; however, these advantages are curbed by the high price charged for genetically modified seeds. Using the contingent valuation method, it is shown that farmers' average willingness to pay is less than half the actual technology price. A lower price would not only increase benefits for growers, but could also multiply company profits, thus, resulting in a Pareto improvement. Implications of the sub-optimal pricing strategy are discussed.     

Stumpage prices in Sweden 1909–2012: Testing for non-stationarity

The price of timber stumpage is one of the few natural-resource rents that can be directly observed as a market price. Rules for optimal timber harvesting under uncertainty have been found to depend on whether the timber rent price is non-stationary or stationary. In this study we extend previous research by Hultkrantz (1995) that tested for unit-root with an exogenous break point in Swedish stumpage prices from 1909 to 1990, employing data up to 2012, hence for 104 years, and unit-root tests with endogenously selected break points. We find support for a structural level break at the end of WW2 and that non-stationarity can be rejected. We show that this is a robust conclusion. There is thus no sign of a new break in the extended recent time period and no signal of a secular increase of timber resource scarcity.     

How forestland size affects household profits from timber harvests: A case-study in China’s Southern collective forest area

To improve the economies of scale in forest management and reduce the fragmentation of forestland, the Chinese central government has implemented a collective forest tenure supplementary reform since 2008. This has included a series of policies for motivating transfer of forestlands use rights among households in the country’s Southern Collective Forest Area (SCFA). However, to date there is little evidence that large-scale forest owners can earn more profits from timber harvests than small-scale forest owners in the SCFA. Using data collected from household surveys in the three of the SCFA’s provinces in 2016, this paper examines the return to scale of forestland ownership for timber harvests in this region, and how the scale of forestland ownership affects households’ profits from timber harvests. The results show a constant return to scale in timber harvests in the case provinces in China’s SCFA, that forestland area makes the most important contribution to the output of timber harvests, and that fragmentation of forestland results in lower profits from timber harvests. It appears that a moderate scale of forestland ownership should be identified for increasing the profits from timber harvests. With the rapid urbanization throughout China, an increase in off-farm employment among rural household members has a negative impact on timber harvests in the region. We argue that policymakers should realize the importance of encouraging the forestland transfers and improve the concentration of forestlands in the next stage of forest tenure rights reform in China’s SCFA.     

Adaptive management decision of agroforestry under timber price risk

In an effort to increase wood production and mitigate environmental problems, agro-forestry practices have emerged as a viable strategy in the Northern Plains of China, where one popular form of the agro-forestry system consists of fast-growing and high-yield plantation of poplar (populus) trees and the underwood planting of button mushroom (Agaricus bisporous). This paper examines adaptive management decision-making with stochastic dynamic programming under risk of timber price. Under the assumption of risk neutral preferences of the investors, the results suggest that the reservation price strategy remains optimal for the harvesting decision of agro-forests: when the timber price is higher than the reservation price, poplar trees should be harvested to end agro-forestry; otherwise, the trees should be retained. Numerical results are presented for sample agro-forest stands, which show that, with underwood planting, the reservation price for timber harvesting will be higher than that in pure forest.     

Editorial - Multiple-use forestry

The problem of multiple-use forestry arises because (1) a forest can be managed to provide a wide range of products and services, (2) the different uses are not perfectly compatible with each other, and (3) some products are not priced in markets and many of the services a forest provides have the characteristics of public goods. Examples of major forest products include, in addition to timber, edible berries, fungi, and hunting games. Forests also provide recreation opportunities and various environmental services (such as regulating local climate, reducing soil erosion, reducing pollutants in the atmosphere, regulating the global climate, providing habitats for wildlife, etc.). The outputs of nontimber goods in general depend on the quantity and structure of the forest, which can be changed by various forest management activities. However, a forest state most suitable for the production of one good is usually not optimal with respect to another good. Typically, there does not exist a set of management activities that simultaneously maximize the outputs of timber and all other goods.Another way to understand the conflicts between different uses is to view standing timber as an intermediate product of forestry investment, which is employed as an “input” for the production of timber products and nontimber goods. Thinking in this way, the conflicts arise partly because timber production and nontimber uses compete for the same input, and partly because of the differences in the “production technology” among different nontimber goods. A change in the standing timber may have positive impacts on some nontimber uses, but have negative effects on others. Because of the conflicts among different uses, it requires that both timber products and nontimber goods should be explicitly incorporated into forestry decision-making in order to achieve the greatest benefits to the forest owner and/or the public.Most of the economic analyses of multiple-use forestry decisions have explicitly or implicitly adopted the view that multiple-use should be achieved in individual stands. Each stand should be managed to produce an optimal mix of timber products and nontimber goods. Another view of multiple-use forestry is to manage each stand for a primary use, whereas multiple-use concerns are addressed by allocating different stands in a forest to different uses. A general argument in support of the primary-use view is that specialization makes for efficiency. The production of timber and nontimber goods is a joint process, however. Strictly speaking, one cannot separate timber production and the production of different nontimber goods. For example, managing a stand for timber production does not exclude the possibility of producing some nontimber goods in the stand. Since every stand usually produces more than one product, efficient multiple-use forestry requires that each stand should be managed for an optimal mix of timber and nontimber outputs. On the other hand, it may well be the case that the optimal multiple-use mix for a particular stand consists of a maximum output of one product. In this case the optimal multiple-use management decision would coincide with the optimal decision pertaining to a single use. In other words, it may be optimal to manage a particular stand for one primary use. Using the terminology of economics, primary-use may be efficient for stands in which the multiple-use production set is nonconvex. Recent research has explored several sources of nonconvexity in the multiple-use production set. However, there is no evidence supporting the argument that specialization is always more efficient than multiple-use management of individual stands. From an economics viewpoint, efficient primary-use is special cases of multiple-use stand management.A widely recognized limitation of multiple-use stand management is that, by considering each stand separately, one neglects the interdependence of nontimber benefits and ecological interactions among individual stands. The nontimber benefits of a stand depend on the output of nontimber goods from other stands. Likewise, the nontimber output from one stand affects the value of nontimber goods produced in the other stands. Ecological interactions among individual stands imply that the output of nontimber goods from two stands in a forest differs from the sum of the outputs from two isolated stands. These interdependence and interactions imply that the relationship between the nontimber benefits of a stand and the stand age (or standing timber stock) cannot be unambiguously determined - it depends on the flow of nontimber goods produced in the surrounding stands. Therefore, it is improper to determine optimal decisions for the individual stands independently. In stead, efficient multiple-use forestry decision should be analyzed by considering all the stands in a forest simultaneously.Another serious limitation of multiple-use stand management is that each stand is treated as a homogenous management unit to be managed according to a uniform management regime. One implicitly assumes that the boundaries of each stand is exogenously given and will remain unchanged over time. This assumption imposes a restriction on the multiple-use production set, thereby creates inefficiency. As an example, consider a large stand with a nonconvex production set. It may be possible to eliminate nonconvexity in the production set and push the production possibility frontier outwards by dividing the stand into several parts and managing each part for a primary-use. It may also be efficient to combine two adjacent stands into one to be managed following a uniform regime, because of the presences of fixed management costs, and/or because the relationship between some nontimber outputs and stand area is not linear.In contrast to income from timber production, nontimber goods produced at different time points are not perfect substitutes. The rate at which a forest owner is willing to substitute a nontimber good produced at one time point for that produced at another time point changes with the outputs of the nontimber good at the two time points. In general cases, the nontimber goods produced at one time point cannot be consumed at another time point, and the marginal utility of a nontimber good decreases when its output increases. This provides a motivation for reducing the variation in the output of nontimber goods over time. An effective approach to coordinating nontimber outputs over time is to apply different management regimes to different parts of a stand, or apply the same regime to adjacent stands, which would change the boundaries of the stands. Preserving the existing stand boundaries would limit the possibility of evening out the nontimber outputs over time, and thereby lead to intertemporal inefficiency in multiple-use management.In previous studies of multiple-use forestry decisions the nontimber outputs or benefits are usually modeled as functions of stand age or standing timber stock. Future flows of nontimber goods or benefits are incorporated into a stand/forest harvest decision model to explore the implications of nontimber uses for optimal harvest decisions. While stand age and standing timber stock may have significant impacts on nontimber outputs, other forest state variables, e. g. the spatial distribution of stands of different ages/species, may be of great importance to the production of nontimber goods. Recognition of such forest state variables could change the relationship between timber production and nontimber outputs and therefore change the optimal forest management decisions.In summary, multiple-use forestry is not simply an extension of timber management with additional flows of benefits to be considered when evaluating alternative management regimes. Recognition of multiple uses of a forest leads to two fundamental changes of the forestry decision problem. First, the optimal intertemporal consumption of forestry income is no longer separable from forest management decisions. In general, the optimal intertemporal consumption of forestry income depends on future flows of nontimber goods, implying that the consumption-saving decision should be made simultaneously with the decision on the production of timber and nontimber goods over time. Secondly, it is no longer appropriate to optimize the management regime for each stand separately. The nontimber outputs from a forest depend on the age distribution of individual stands, and on a wide range of other forest state variables such as the spatial distribution of stands of different ages and tree-species composition. Ecological interactions and interdependence among stands imply that management regimes for different stands should be optimized simultaneously. In addition to changing rotation ages and harvest levels, efficient multiple-use forestry requires optimizing the spatial allocation of harvests, redefining the boundaries of stands, coordinating the choices of tree species in regeneration of harvested area and so on.The lack of rigorous production functions for nontimber goods imposes a severe restriction on attempts to perform comprehensive economic analyses of multiple-use forestry decisions. This restriction in itself is no justification for ignoring many of the key aspects of multiple-use forestry problem and modeling the problem as one of determining the optimal rotation age or optimal harvest level. It requires that economic models of multiple-use forestry should be developed with special consideration of the vague and imprecise information regarding the relationships between nontimber outputs and forest state variables.Peichen GongDepartment of Forest EconomicsSE-90183 UmeåSweden     

中国原木进口量价齐增的原因及对策

中国原木产品的国际贸易依存度一直较高,特别是自2010年以来,中国原木进口出现了高价位上进口量激增的现象,以进口原木为主要原材料的中国家具出口也创下历史新高。这一现象不得不引起我们的注意,原木进口来源国集中限制了进口原木的定价话语权,旺盛的国内需求成为高进口价的重要拉动力量,分析原木进口量价齐增的原因,并找到相应的对策已经成为当务之急。     

Adaptive thinning strategies for mixed-species stand management with stochastic prices

This paper presents an efficient and flexible approach of determining optimal thinning strategies for mixed-species stands with stochastic timber prices. The approach aims to determine the optimal stock of each species to be maintained in the stand conditional on the observed stand state and timber prices, whereas thinning intensity is given by the difference between the existing and the optimal stocks. For demonstration purpose, the approach is applied to determine the optimal thinning strategies for an example stand of Scots pine (Pinus Sylvestris L.) and Norway spruce (Picea abies L. Karst.) in northern Sweden. The optimal stock of each species is formulated as a parametric function of stand age and stumpage prices of the respective species. A reservation price function is constructed to determine the optimal time of clearcut based on the observed stand state and timber prices. The parameters of the optimal stock-level and reservation price functions are determined by maximizing the expected present value of the stand. The results indicate that using the optimal stock-level function approach can significantly improve the thinning decisions for mixed species stand with stochastic timber prices.     

Integrating a random utility model for non-timber forest users into a strategic forest planning model

In this paper, we developed a mixed-integer non-linear programming model that integrates access road development and a utility theoretic spatial choice model of hunters into a strategic forest harvest-scheduling model. The model was applied to an operationally sized Forest Management Agreement (FMA) area in central Alberta, Canada. The resulting behavioral model had approximately 2.6 million decision variables and about 96,000 constraints, and was used to examine the impacts of timber harvesting on hunters’ preference for hunting sites. We also evaluated the impacts of various levels of hunter welfare on: (i) the degree of tradeoff between timber and hunting benefits, (ii) timber harvest schedules, and (iii) the marginal costs of producing timber products. The results showed significant tradeoffs between timber and hunting benefits and a clear link between landscape characteristics and changes and behavioral responses by hunters.     

Estimating the long-run impact of forest fires on the eucalyptus timber supply in Galicia,Spain

Using annual data, we have estimated the timber harvest of eucalyptus in the region of Galicia (Spain). The explanatory variables considered were price, pulp exports, and salvage timber. The latter variable was used as a proxy for forest fires. The problems related to spurious regression were addressed by applying the bounds testing approach to cointegration, and confidence intervals were constructed using the bootstrap technique. The results indicate that pulp exports have a positive effect on the harvested timber volume. Moreover, we find that salvage timber positively affects the timber supply. This result indicates that there is no substitution between salvage timber and non-damaged timber. It also suggests that the natural expansion of the eucalyptus in Galicia compensates for the destruction caused by forest fires, avoiding supply shortages. On the other hand, and according to the economic law of supply, the timber price shows a positive effect.     

Optimal forest harvest age considering carbon sequestration in multiple carbon pools: A comparative statics analysis

We present an analytical model for determination of the economically optimal harvest age of a forest stand considering timber value, and the value of carbon fluxes in living biomass, dead organic matter, and wood products pools. Through comparative statics analysis, we find that consideration of timber value and fluxes in biomass carbon increase harvest age relative to the timber only solution, and that the effect on optimal harvest age of incorporating fluxes in the dead organic matter and wood products pools is indeterminate.We also present a numerical example to examine the magnitudes of these effects. In general, incorporating the dead organic matter and wood products pools have the effect of reducing rotation age. Perhaps more interestingly, when initial stocks of carbon in dead organic matter or wood products pool are relatively high, consideration of these pools can have a highly negative effect on net present value.     

Determining optimal forest rotation ages and carbon offset credits: Accounting for post-harvest carbon storehouses

Sequestering carbon in forest ecosystems is important for mitigating climate change. A major policy concern is whether forests should be left unharvested to avoid carbon dioxide (CO₂) emissions and store carbon, or harvested to take advantage of potential carbon storage in post-harvest wood product sinks and removal of CO₂ from the atmosphere by new growth. The issue is addressed in this paper by examining carbon rotation ages that consider commercial timber as well as carbon values. A discrete-time optimal rotation age model is developed that employs data on carbon fluxes stored in both living and dead biomass as opposed to carbon as a function of timber growth. Carbon is allocated to several ecosystem and post-harvest product pools that decay over time at different rates. In addition, the timing of carbon fluxes is taken into account by weighting future carbon fluxes as less important than current ones. Using simple formulae for determining optimal rotation ages, we find that: (1) Reducing the price of timber while increasing the price of carbon will increase rotation age, perhaps to infinity (stand remains unharvested). (2) An increase in the rate used to discount physical carbon generally reduces the rotation age, but not in all cases. (3) As a corollary, an increase in the price of carbon increases or reduces rotation age depending on the weight chosen to discount future carbon fluxes. (4) Site characteristics and the mix of species on the site affect conclusions (2) and (3). (5) A large variety of carbon offset credits from forestry activities could be justified, which makes it difficult to accept any.     

Review - Roger A. Sedjo (2003): Economics of Forestry

Ashgate Publishing Limited, Gower House, Croft Road, Aldershot, Hants GU11 3HR, England (www.ashgate.com). 498 p. £ 100.00. ISBN 0-7546-2237-1 (hardback).Being one volume in the series of the International Library of Environmental Economics and Policy (T. Tietenberg and W. Morrison, gen. eds.), this book is a collection of some of the most significant journal essays in forest economics and forest policy. In compiling this volume, Roger Sedjo did a great service to the forest economics profession.This volume includes twenty-five essays originally published between 1849 and 1996 in a dozen journals, and one chapter from the Third Assessment Report of the International Panel on Climate Change (IPCC, 2001) which addresses the biological sequestration of carbon in terrestrial ecosystems. These are organized into four parts: the harvest rotation issue, timber supply, multiple-use and non-timber outputs, and global issues. An introduction essay to this volume, written by the editor, provides an overview of the major issues in forest resource management and discusses some the most important contributions to the forest economics literature.The eleven essays in the first part of the book provide a rather complete coverage of the most important contributions to the literature on optimal rotation age, which is a fundamental issue in forest management and forestry investment. Four of the essays (Faustmann 1849, Ohlin 1921, Bentley and Teeguarden 1965, and Samuelson 1976) address the basic formulation and interpretation of the optimal rotation model. Four essays (Löfgren 1985, Newman, Gilbert and Hyde 1985, Reed 1984, and Brazee and Mendelsohn 1988) extend the basic rotation model to examine the rotation age decision in the presence of deterministic trends and uncertainty in timber yield and price, respectively. Based on the Faustamnn rotation model, Klemperer (1976) and Chang (1982) examine the impacts of taxation on forest value and on the optimal rotation age. Koskela (1989) provides a detailed analysis of the impacts of taxation on timber harvest decisions under price uncertainty. What I feel missing in this part is a comparative statics analysis examining the impacts of changing economic parameters on the optimal rotation age.Part II includes five essays on economic analysis of long-run timber supply. Clawson (1979) reviews the historical development of forest resource and forest utilization in the United States. Vaux (1973) examines the long-run potential supply of timber from forest plantations in California. Berck (1979) investigates the difference in harvesting behavior between private forest owners and public managers. Lyon (1981) and Lyon and Sedjo (1983) examine the optimal exploitation of old-growth natural forests and the transition to steady state. While these essays all focus on the long-run timber supply in the United States, the methods developed and used in these papers could be applied for any other region. The exploitation of old-growth natural forests and the long-term availability of timber have been without doubt two major concerns in the United States. In many parts of the world, however, concerns about timber supply in the short-run have also had great influences on the development of forest policy. It would have been appreciated if a couple of essays addressing the short-run supply of timber had been included.Part III contains three essays dealing with the problem of multiple-use forest management. Gregory (1955) develops an economic framework for multiple-use management based joint production theory. Hartman (1976) examines the multiple-use rotation age decision. Swallow, Parks and Wear (1990) investigate the problem of non-convexities involved in multiple-use rotation age decisions. The merits of these essays lie in that they use rather simple models to demonstrate the importance of incorporating non-timber benefits in forestry decisions and the complexities of the multiple-use problem. In his 1976 essay, Hartman points out that in many situations management practices applied to one stand affect the value of non-timber outputs derived from the adjacent stands; such interdependence needs to be incorporated into multiple-use decision analysis. I certainly would like to find in this volume one or two essays examining the impacts of stand interdependence on the optimal decision. Another important issue in multiple-use management, which is not covered in this volume either, is the valuation of non-market priced outputs and services. Yet I believe that this omission is well motivated, for there are two separate volumes in this series devoted to non-market valuation methods (R. T. Carson, ed. Direct Environmental Valuation Methods, Volumes I and II).The seven essays in Part IV deal with a set of forest economic and policy issues related to global warming and biodiversity conservation. Parks and Hardie (1995) examine the cost-effective subsidies to convert marginal agricultural land to forests for the purpose of carbon sequestration. Hoen and Solberg (1993) analyze the potential and cost-effectiveness of increasing carbon sequestration in existing forests by changing forestry practices. van Kooten, Binkley and Delcourt (1995) examine the effect of carbon taxes and subsidies on the optimal rotation age. The chapter from the Third Assessment Report of IPCC (2001) provides a comprehensive review of the literature on the ecological, environmental, social and economic aspects of carbon sequestration in terrestrial ecosystems. While forests and forest management could play an important role in mitigating climate change, increasing level of atmospheric dioxide and climate change would inevitably affect the productivity of forest ecosystems, thereby could have significant impacts on future timber growth, harvest and inventory as well as carbon storage in forest ecosystems. Joyce et al. (1995) present a framework for analyzing the potential effects of climate change on the forest sector. The remaining two essays in this part examine the costs and benefits of biodiversity preservation, respectively. Montgomery, Brown and Adams (1994) estimate the marginal cost of preserving the northern spotted owl. Simpson, Sedjo and Reid (1996) examine the expected value of the marginal species as an input to pharmaceuticals.The editor points out in the introduction chapter that there are many other important contributions that are not included in this volume, some of these are mentioned, others not. In addition to the few omissions noted earlier, several important economic and policy issues such as uneven-aged stand management, deforestation, international trade, sustainable forestry, forest recreation, wildlife management and so on are not discussed. Moreover, none of the journal essays published since 1997 is selected. That there are many other important contributions does not mean the essays included in this volume are less important, however. While each forest economist may present a different list of the most important papers, most (if not all) of the essays in this volume would appear on anyone's list. I strongly recommend this book for research scientists and graduate students of forest economics as an essential addition to their reference library.     

林权流转价格及其影响因素分析

以林农拥有的活立木为研究对象,利用2007—2017年浙江省1546宗活立木流转样本,采用多元线性回归实证分析了是否在林权交易中心交易对活立木流转价格存在影响。结果表明:关键解释变量是否在林权交易中心进行交易对活立木流转价格具有显著的正向影响;流转面积、单位面积蓄积、区域虚拟变量、坡度等对流转价格都产生一定程度的影响;流转期限对流转价格的影响不大。因此,需要加强对林权交易中心的宣传,降低相关的交易成本,从而吸引更多的小规模林农参与交易。     

Short supply chain participation and market performance for vegetable farmers in China

The fresh food supply chain in China has begun to reduce the number of intermediaries that connect producers and consumers. Using farm‐level data, this paper investigates the impacts of short supply chain participation on vegetable farmers’ market performance, including profits, productivity, production cost, price and price risk. The results show that the participation in a short supply chain is a profit‐maximising strategy and risk management tool for farmers. The increase in profit is attributed to productivity advantages, farm size expansion, and risk reduction rather than because of price premiums or cost savings. A policy implication is that short supply chain promotion has many benefits, but the government should be more concerned about the sustainability of short supply chains.     

Do land price variation and environmental regulation improve chemical industrial agglomeration? A regional analysis in China

China’s governments have a strong control over resources, such as land resources, and determine environmental policies for the nation. As an essential part of the production cost of chemical enterprises, land price and pollution costs play a critical role in location selection. However, whether the current incompletely competitive industrial land market and improving environmental regulations in China would affect chemical industrial agglomeration (CIA) is unclear. This study incorporates the land price variations, environmental regulation, and CIA into one research framework. Calculation methods of industrial land price variation (LPV), environmental regulation (ERI), and CIA are established, to reveal their development level. Furthermore, a geographically and temporally weighted regression (GTWR) model is established to estimate the spatial and temporal impacts of land price variation and environmental regulation on CIA by using a panel data from 2007 to 2015. The results show significant spatial differences in the impacts of land price variation and environmental regulation on CIA between cities. The majority of the impacts of land price variation and environmental regulation on CIA are negative. However, the temporal change in the impacts are not as significant as the spatial change. Other control variables, namely, free trade, natural resources, and highway density, have a positive impact on CIA.     

The sustainability of timber production from Eastern Amazonian forests

Although the regulations are imperfectly enforced, logging firms in the Brazilian Amazon are subject to forest management regulations intended to reduce environmental damage and protect future forest productivity. Additionally, voluntary best practices firms adopt to achieve environmental performance that exceed regulatory requirements are largely limited to reduced impact logging (RIL) systems that reduce harvest damage relative to conventional logging systems used by a large majority of firms in the region. Existing regulations combined with best practices may not be adequate to ensure sustained yields. This inadequacy is an important issue as Brazil implements an ambitious program of forest concessions on public lands. We analyze the profitability and environmental outcomes of best logging practices and proposed sustainability requirements. We propose two operational definitions of sustainability (the first focusing on sustaining stand-level timber volumes and the other focusing on sustaining species-level volumes within the stand) based on sustaining timber inventories across cutting cycles rather than on sustaining overall harvest yields. RIL is shown to be profitable for loggers and increase the timber available for future harvests. While volume predicted to be available for the second and third harvests are significantly lower than the available timber in the unlogged forest, the second and third harvests are projected to be profitable and have the potential for sustainability despite high opportunity costs. However, as harvesting is repeated into the future, results show the composition of the harvest shifts from higher-value shade-tolerant and emergent species toward a greater reliance on longer-lived, lower-value pioneer species. This shift may create pressure to expand the forest base under management in order to continue to supply high-value species or increase the risk of timber trespass in conservation units and areas under community or indigenous management.