scholarly journals Effect of Forest Certification on International Trade in Forest Products

Forests ◽  
2020 ◽  
Vol 11 (12) ◽  
pp. 1270
Author(s):  
Jiaojiao Chen ◽  
Lanhui Wang ◽  
Lingchao Li ◽  
Juliana Magalhães ◽  
Weiming Song ◽  
...  

Forest certification plays an important role in the global trade of legal, sustainably harvested timber. There is no accurate definition of how international forest certification systems impact international trade from a global perspective. This paper is intended to evaluate the influence of forest certification on international trade, so that it can provide a scientific basis for the improvement of the international forest certification systems and for the development of relevant forestry industries in different countries. First, the influence of forest certification on international trade of forest products is explained in the economic model; hence, four hypotheses are put forward. Second, to test these hypotheses, we verify the panel data of bilateral trade and forest certification of all forest products among 67 economies from 2009 to 2018 by incorporating forest certifications into the gravity model. Finally, tests by country groups and product groups were further analyzed, respectively. The results show that: (1) The extended Poisson pseudo maximum likelihood (PPML) estimation solves the problem of the heteroscedasticity and zero trade value problems of the gravity model well in the forest industry. (2) Forest certification has an export competitive effect, a trade barrier effect, as well as common language effect. (3) Forest certification has asymmetric trade effects. The export competitive effect of forest certification in developing countries is greater than that in developed countries. Forest certification has become a trade barrier for developing countries, especially in the process of trade with developed countries. The common language effect is higher during the trade between developed and developing countries. The export competitive effect of wood products is higher than that of furniture products. Forest certification has trade barrier effect on wood products in developing countries, while it has trade barrier effect on furniture products in developed countries.

1977 ◽  
Vol 7 (2) ◽  
pp. 392-399 ◽  
Author(s):  
Joseph Buongiorno ◽  
Gerold L. Grosenick

A model fitted to cross-sectional observations is proposed which links the growth of consumption of structural wood materials and paper and paperboard to the economic and demographic growth of developed and developing economies. It was found that the response of consumption per capita to a specific growth of income per capita decreases systematically as the level of consumption attained increases. The consumption functions, for both groups of products, differed significantly for high-income and low-income countries. A set of input-output relationships was also established to estimate the amounts of wood pulp and industrial roundwood required to produce specific amounts of structural and paper materials. Those relationships have significantly shifted during the period 1961–1971, indicating an improvement in the efficiency of raw-material usage by the wood-products industries. The full model was applied to calculate the levels of consumption and of raw-material requirements consistent with Timbergen's indicative world plan (Timbergen, J. 1976. Development and environment aims: an intuitive view. In World modeling: a dialogue. Editedby C. W. Churchman and R. O. Mason. North Holland, Amsterdam, pp. 55–61). Given Timbergen's targets for world economic and demographic growth, a considerable improvement would occur in the balance of consumption between developed and developing countries but consumption per capita of industrial roundwood equivalent would still be three times higher in developed countries by the year 2010. The main growth of industrial roundwood consumption would occur in the paper and paperboard industry which would consume 65% of the world output by the end of the period. Developing countries would by that time become the main market for paper and paperboard products.


2013 ◽  
Vol 01 (01) ◽  
pp. 1350008 ◽  
Author(s):  
Mou WANG

Drawing on the idea that countries are eligible to implement differentiated emission reduction policies based on their respective capabilities, some parties of UNFCCC attempt to weaken the principle of “Common but differentiated responsibilities(CBDR)” and impose carbon tariff on international trade. This initiative is in fact another camouflage to burden developing countries with emission cut obligation, which has no doubt undermined the development rights of developing countries. This paper defines Carbon Tariff as border measures that target import goods with embodied carbon emission. It can be import tariffs or other domestic tax measures that adjust border tax, which includes plain import tariffs and export rebates, border tax adjustment, emission quota and permit etc. For some developed countries, carbon tariffs mean to sever trade protectionism and to build trade barriers. Its theoretical arguments like “loss of comparative advantage”, “carbon leakage decreases environmental effectiveness” and “theoretical model bases” are pseudo-propositions without international consensus. Carbon tariff has become an intensively debated issue due to its duality of climate change and trade, but neither UNFCCC nor WTO has clarified this issue or has indicated a clear statement in this regard. As a result, it allows some parties to take advantage of this loophole and escape its international climate change obligation. Carbon tariff is an issue arising from global climate governance. To promote the cooperation of global climate governance and safeguard the social and economic development of developing countries, a fair and justified climate change regime and international trade institution should be established, and the settlement of the carbon tariff issue should be addressed within these frameworks. This paper argues that the international governance of carbon tariff should in cooperation with other international agreements; however, principles and guidelines regarding this issue should be developed under the UNFCCC. Based on these principles and guidelines, WTO can develop related technical operation provisions.


2021 ◽  

Abstract Because of the long-standing Canada-United States lumber trade dispute and the current pressure on the world's forests as a renewable energy source, much attention has been directed toward the modelling of international trade in wood products. Two types of trade models are described in this book: one is rooted in economic theory and mathematical programming, and the other consists of two econometric/statistical models--a gravity model rooted in theory and an approach known as GVAR that relies on time series analyses. The purpose of the book is to provide the background theory behind models and enable readers to easily construct their own models to analyze policy questions, whether in forestry or another sector. Examples in the book illustrate how models can be used to say something about a variety of issues, including identification of the gains and losses to various players in the North American softwood lumber business, and the potential for redirecting sales of lumber to countries outside the United States. The discussion is expanded to include other products besides lumber, and used to examine, for example, the effects of log export restrictions by one naton on all other forestry jurisdictions, the impacts of climate policies as they relate to the global forest sector, and the impact of oil prices on forest product markets throughout the world.


1999 ◽  
Vol 75 (2) ◽  
pp. 208-212 ◽  
Author(s):  
Marc-André Côté

Supporters of forest and wood product certification are generally seeking to improve forest management and to ensure market access to forest products. Although wood products certification can be seen as an interesting marketing tool, it is doubtful whether it will improve forest management at the international level. Forest and wood product certification is already seen as a complementary tool to other existing instruments such as regulations and subsidies. However, a closer analysis shows that certification could be focused on the wrong countries, management units, scales of management, actors and problems to be potentially effective. This article aims to assess the possible impact of certification processes on the worldwide forest environment. The identification of possible limitations of forest product certification process could help to make that instrument more effective. Key words: forest certification, environmental impact


Author(s):  
Michael Trebilcock

While economists overwhelmingly favor free trade, even unilateral free trade, because of the gains realizable from specialization and the exploitation of comparative advantage, in fact international trading relations are structured by a complex body of multilateral and preferential trade agreements. The article outlines the case for multilateral trade agreements and the non-discrimination principle that they embody, in the form of both the Most Favored Nation principle and the National Treatment principle, where non-discrimination has been widely advocated as supporting both geopolitical goals (reducing economic factionalism) and economic goals (ensuring the full play of theories of comparative advantage undistorted by discriminatory trade treatment). Despite the virtues of multilateral trade agreements, preferential trade agreements (PTAs), authorized from the outset under GATT, have proliferated in recent years, even though they are inherently discriminatory between members and non-members, provoking vigorous debates as to whether (a) PTAs are trade-creating or trade-diverting; (b) whether they increase transaction costs in international trade; and (c) whether they undermine the future course of multilateral trade liberalization. A further and similarly contentious derogation from the principle of non-discrimination under the multilateral system is Special and Differential Treatment for developing countries, where since the mid-1950s developing countries have been given much greater latitude than developed countries to engage in trade protectionism on the import side in order to promote infant industries, and since the mid-1960s on the export side have benefited from non-reciprocal trade concessions by developed countries on products of actual or potential export interest to developing countries. Beyond debates over the strengths and weaknesses of multilateral trade agreements and the two major derogations therefrom, further debates surround the appropriate scope of trade agreements, and in particular the expansion of their scope in recent decades to address divergences or incompatibilities across a wide range of domestic regulatory and related policies that arguably create frictions in cross-border trade and investment and hence constitute an impediment to it. The article goes on to consider contemporary fair trade versus free trade debates, including concerns over trade deficits, currency manipulation, export subsidies, misappropriation of intellectual property rights, and lax labor or environmental standards. The article concludes with a consideration of the case for a larger scope for plurilateral trade agreements internationally, and for a larger scope for active labor market policies domestically to mitigate transition costs from trade.


2021 ◽  
Vol 23 (1) ◽  
pp. 105-126
Author(s):  
L. Xu ◽  
A.J. Lu

Forest certification has been widely hailed for its positive impacts on implementing sustainable forest management. Despite various adjustments to promote its adoption, most of the world's certified forests are in developed countries, with about 87% in Europe and North America. To analyse the reasons for the slow certification uptake in the developing world, two rounds of literature searches were conducted, and the hindrances identified were then discussed under six themes: forest quality, socioeconomic interactions, governance capacity, certification investment, firm expectations and market responses, and risk aversion and the attitude-behaviour gap. Among them, conventional institutions and governance are the most restrictive constraints. Certification, while a non-state form of governance, may not exercise its regulatory power freely through the market without being impeded by the unfavourable contexts in which it takes hold. Finally, recommendations were proposed from the perspectives of politics, legislation, market, and certification schemes to resolve the hindrances in achieving certification.


2020 ◽  
Vol 12 (1) ◽  
pp. 213-238
Author(s):  
David Atkin ◽  
Amit K. Khandelwal

Substantial research in development economics has highlighted the presence of weak institutions, market failures, and distortions in developing countries. Yet much of the knowledge generated in international trade comes from workhorse models that abstract from these frictions. This review summarizes the recent literature that assesses how these characteristics interact (or may interact) with trade reforms, resulting in different impacts in developing countries relative to what we would expect in developed countries. We discuss understudied areas that warrant further research.


2019 ◽  
Vol 65 (4) ◽  
pp. 439-451
Author(s):  
Prativa Shrestha ◽  
Changyou Sun

Abstract The environmental impact of commodity trade has become a considerable concern in recent decades. In this study, carbon emissions embodied in forest products trade are examined through a multiregional input–output model. Compared with other industries, the forest products industry is clean with a small total emission and mean emission intensity. The paper sector is more substantial in total emission and dirtier in emission intensity than the wood sector. Most countries with extensive forest products trade have experienced declining consumption-based carbon emissions over 1995–2009, and all countries have become cleaner based on the emission intensity value. Carbon emissions embodied in international trade of forest products are about 25 percent of total emissions from production activities. Developing countries generally have much higher emission intensities than developed countries. Uncertainties in the carbon emission data have a larger impact than those in the intermediate and final consumption data. These findings are helpful for policymakers to understand the economic–environmental relations of forest products trade and to improve policy and agreement designs.


2015 ◽  
Vol 10 (10) ◽  
pp. 2540-2549
Author(s):  
Laetitia Byukusenge ◽  
Song Wei ◽  
Delphine Tuyishime

Previous studies have shown that the geographic distance is among the factors that can typically results in diminished trade flows between two or more countries. As the international trade is one among the public policies, the governments of countries have to take control policies about their imports and exports after signing some trade contracts or agreements of eliminating trade barriers between trade countries. This paper analyzes and compares how the geographic distance affects the international trade flows of developed and developing countries‟ economies and becomes the obstacle to the developing countries to achieve their objectives and goals in eliminating trade barriers between their trading partners. The gravity model with panel data sets for period of 2008 to 2011 are used to determine the geographic distance effects in those countries. The sample size is bilateral trade flows of eight developing countries with lower income of EAC and two developed countries and one developing country with middle income of NAFTA. The study discovers that the various factors influence the geographic distance effects on international trade flows of developed and developing countries in different ways. This paper recommends that the signed policies between countries should be observed, maintained and followed in order to achieve expected objectives.


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