Journal of Forest Economics > Vol 19 > Issue 2

Estimating the long-run impact of forest fires on the eucalyptus timber supply in Galicia, Spain

Manuel González-Gómez, , mgzlez@uvigo.es Marcos Álvarez-Díaz, , marcos.alvarez@uvigo.es María Soledad Otero-Giráldez, , sotero@uvigo.es
 
Suggested Citation
Manuel González-Gómez, Marcos Álvarez-Díaz and María Soledad Otero-Giráldez (2013), "Estimating the long-run impact of forest fires on the eucalyptus timber supply in Galicia, Spain", Journal of Forest Economics: Vol. 19: No. 2, pp 149-161. http://dx.doi.org/10.1016/j.jfe.2012.12.002

Published: 0/4/2013
© 0 2013 Manuel González-Gómez, Marcos Álvarez-Díaz, María Soledad Otero-Giráldez
 
Subjects
 
Keywords
JEL Codes:Q21(Demand and Supply)Q23(Forestry)Q54(ClimateNatural disastersGlobal warming)
EucalyptusForest firesCointegrationARDLBootstrap
 

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In this article:
Introduction
Empirical model and description of the variables
Methodological procedure
Empirical results
Summary and conclusions

Abstract

Using annual data, we have estimated the timber harvest of eucalyptus in the region of Galicia (Spain). The explanatory variables considered were price, pulp exports, and salvage timber. The latter variable was used as a proxy for forest fires. The problems related to spurious regression were addressed by applying the bounds testing approach to cointegration, and confidence intervals were constructed using the bootstrap technique. The results indicate that pulp exports have a positive effect on the harvested timber volume. Moreover, we find that salvage timber positively affects the timber supply. This result indicates that there is no substitution between salvage timber and non-damaged timber. It also suggests that the natural expansion of the eucalyptus in Galicia compensates for the destruction caused by forest fires, avoiding supply shortages. On the other hand, and according to the economic law of supply, the timber price shows a positive effect.

DOI:10.1016/j.jfe.2012.12.002