Title: Long-term effects of eliminating illegal logging on the world forest industries, trade, and inventory
Author: Li, Ruhong; Buongiorno, J.; Turner, J.A.; Zhu, S.; Prestemon, J.
Source: Forest Policy and Economics 10(7-8):480-490
Description: We assessed the impact on the world forest sector of a progressive elimination of illegal logging. The analysis compared predictions from 2007 to 2020, with and without a gradual reduction of illegally logged industrial roundwood from 2007 to 2011. A large part of the curtailment of timber supply due to the stoppage of illegal logging would be compensated by increased legal production incited by higher prices. As a result, without illegal logging the world annual production of industrial roundwood would decrease by no more than 1%, even though it would decrease by up to 8% in developing countries. World prices would rise by 1.5 to 3.5% for industrial roundwood and by 0.5 to 2% for processed products, depending on the assumption on illegal logging rates. World consumer expenditures for wood products and producer revenues would rise by 1 to 2% without illegal logging. World value added in forest industries would remain the same. However, the changes in consumer expenditures would be more than double the changes in producer revenues in countries dependent on illegally logged timber of domestic or foreign origin such as Indonesia and China. Symmetrically, changes in producer revenues would be almost twice the changes in consumer expenditures in countries with little illegal logging and efficient industries, such as Canada, Germany and the United States. Value added in forest industries would decrease most in countries with heavy illegal logging (12% in Indonesia and up to 9% in Brazil), and it would increase most in Germany, Canada (4%), and the United States (2%). Without illegal logging, the world forest inventory would increase slightly, as the increase in developing countries would more than compensate the decrease in developed countries.
Keywords: illegal logging, green crime, international trade, policy, wood products, modeling
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Li, Ruhong; Buongiorno, J.; Turner, J.A.; Zhu, S.; Prestemon, J. 2008. Long-term effects of eliminating illegal logging on the world forest industries, trade, and inventory. Forest Policy and Economics 10(7-8):480-490.
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