The Economics of Timber Supply: An Analytical Synthesis of Modeling Approaches
The joint supply of timber and other services from forest environments plays a central role in most forest land debates. This paper defines a general conceptual model of timber supply that provides the context for discussing both individual harvest choice and aggregate supply models. While the structure and breadth of these models has developed considerably over the last twenty years, unresolved issues remain. Supply formulations that account for the quality and vintage distribution of forest capital will be necessary for improving medium- and long-run forecasts. This will be especially important for examining the potential impacts of structural changes in forest production and timber markets. In addition, consistent aggregation of individual owners to total supply will be required to address changing forest land ownership patterns.