The Due diligence system in the EU’s Timber Regulation: non-tariff trade barrier or leverage effect?

摘要

This paper presents a novel spatial equilibrium model to analyse the leverage impact of the EU’s Timber Regulation on sustainable timber production. This leverage effect is an argument in favour of FLEGT but it has never been investigated thoroughly, or simultaneously for demand and supply. The leverage effect is measured in terms of the market share of sustainable timber in the total timber consumption and production of a region. Our research finds that FLEGT does not provide an incentive for sustainable timber production and consumption at global level. FLEGT creates a non-tariff trade barrier at the conventional timber markets of important producing regions (Europe and North America). This protectionist situation favours conventional timber which decreases the importance of sustainable timber. In addition, the protectionist situation decreases global welfare.