Incidence of the 1996 U.S.-Canada Softwood Lumber Agreement among Landowners, Loggers, and Lumber Manufacturers in the U.S. South

摘要

A framework was developed to estimate the welfare incidence of the 1996 U.S.-Canada Softwood Lumber Agreement among producers in two-processing-stage markets-timberland owners, loggers, and lumber manufacturers-in the U.S. South. Timberland owners arethe largest beneficiary whereas lumber manufacturers are the second and loggers the least. Empirically, without considering substitution effects among production inputs, timberland owners have 47.4% of total incremental producer surplus, whereas lumbermanufacturers have 39.4% and loggers 13.2%. When the substitution effects are considered, timberland owners gain slightly less whereas lumber manufacturers and loggers gain slightly more.