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An Integrated Model of Québec‐Ontario‐U.S. Northeast Softwood Lumber Markets
Author(s) -
Bernard JeanThomas,
Bouthillier Luc,
Catimel Jérôme,
Gélinas Nancy
Publication year - 1997
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1244438
Subject(s) - stumpage , softwood , agricultural economics , economics , pulp and paper industry , engineering
We analyze an interregional softwood lumber trade model for the three main species (spruce, pine, and fir [SPF]) which are indigenous to Québec, Ontario, and the U.S. Northeast. Demand for SPF softwood lumber is price elastic in Ontario and the U.S. Northeast, but not in Québec. It is inelastic with respect to residential construction. Supply price elasticities are less than one. Policy instruments such as exchange rate, export taxes, Canadian federal sales tax, and cost of logs change exports and imports but with minor effects on prices. Export (import) duties are more effective in redirecting trade than is a stumpage fee applied by the provinces.