You are here: Home
/ Publication Information
Title: Price and Welfare Effects of Catastrophic Forest Damage from Southern Pine Beetle Epidemics
Author: Holmes, Thomas P.;
Source: Forest Science 37(2):500-516
Publication Series: Miscellaneous Publication
Description: Southern pine beetle (Dendroctonus frontalis) epidemics are periodically responsible for catastrophic levels of mortality to southern yellow pine forests. Traditional forest damage appraisal techniques developed for site specific economic analysis are theoretically weak since they do not consider aggregate impacts across ecosystems and related markets. Because the traditional model estimates losses only to producers with damaged forests, it provides misleading information from a distributional standpoint by ignoring impacts on producers with undamaged forests and timber consumers. An economic model of timber supply and demand is introduced and used to develop a new technique for estimating short-run market level impacts of catastrophic forest damages. The null hypothesis that catastrophic disruption of forest ecosystem production has no effect on timber markets is tested using intervention analysis and data on the recent Texas-Louisiana epidemic. Parameter estimates are used to compute short-run changes in economic welfare for producers on damaged forests, producers on undamaged forests, and timber consumers. Principal findings are: (1) changes in social welfare resulting from catastrophic damage to standing timber across forest ecosystems requires market-level analysis, and (2) the net change in economic welfare resulting from insect epidemics is unambiguously negative.
Keywords: Intervention analysis, impact assessment, time series
- We recommend that you also print this page and attach it to the printout of the article, to retain the full citation information.
- This article was written and prepared by U.S. Government employees on official time, and is therefore in the public domain.
- You may send email to firstname.lastname@example.org to request a hard copy of this publication. (Please specify exactly
which publication you are requesting and your mailing address.)
XML: View XML
Holmes, Thomas P. 1991. Price and Welfare Effects of Catastrophic Forest Damage from Southern Pine Beetle Epidemics. Forest Science 37(2):500-516
Get the latest version of the Adobe Acrobat reader or Acrobat Reader for Windows with Search and Accessibility