Title: The steady-state treatment of forestry in CGE models

Authors: Luz Centeno Stenberg, Mahinda Siriwardana

Addresses: Faculty of Business and Law, Central Queensland University, Sydney International Campus, 333 Kent St. Sydney NSW 2000, Australia. ' School of Economics University of New England, Armidale, NSW 2351, Australia

Abstract: This paper provides a critical examination of the implicit assumption in steady-state forestry modelling, particularly those employed in CGE models. That is, forests are characterised by steady-state conditions. Therefore, a conceptual model is developed to examine if there is a tendency for forest areas to reach some sort of steady-state. The results from the model simulations show that steady-state does not characterise forest areas. Steady-state is reached after a long period of time, say, 200 years or when a sustainable harvesting regime and regeneration activities are constantly applied and formulated to maintain a set timber volume target.

Keywords: CGE modelling; computable general equilibrium models; selective logging; steady-state; sustainable forestry; simulation; sustainable harvesting; regeneration.

DOI: 10.1504/IJARGE.2006.008162

International Journal of Agricultural Resources, Governance and Ecology, 2006 Vol.5 No.1, pp.1 - 17

Published online: 22 Nov 2005 *

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