Journal Article

An Integrated Model of Québec-Ontario-U.S. Northeast Softwood Lumber Markets

Jean-Thomas Bernard, Luc Bouthillier, Jérôme Catimel and Nancy Gélinas

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 79, issue 3, pages 987-1000
Published in print August 1997 | ISSN: 0002-9092
Published online August 1997 | e-ISSN: 1467-8276 | DOI: http://dx.doi.org/10.2307/1244438
An Integrated Model of Québec-Ontario-U.S. Northeast Softwood Lumber Markets

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We analyze an interregional softwood lumber trade model for the three main species (spruce, pine, and fir [SPF]) which are indigenous to Québec, Ontario, and the U.S. Northeast. Demand for SPF softwood lumber is price elastic in Ontario and the U.S. Northeast, but not in Québec. It is inelastic with respect to residential construction. Supply price elasticities are less than one. Policy instruments such as exchange rate, export taxes, Canadian federal sales tax, and cost of logs change exports and imports but with minor effects on prices. Export (import) duties are more effective in redirecting trade than is a stumpage fee applied by the provinces.

Keywords: demand and supply price elasticities; export taxes; softwood lumber trade; stumpage fees; L730

Journal Article.  0 words. 

Subjects: Primary Products

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