A review of recent developments and applications of partial equilibrium models of the forest sector

Abstract

Recent history has seen an increase in the utilization of partial equilibrium based forest sector models to identify potential impacts of various policies or timber market shocks. These models are particularly useful in that they employ economic theory to capture the interaction of supply and demand in a framework where commodity prices are endogenous to the policy or shock simulated. We present recent developments and linkages between models and review applications of these models to forest policy questions over the previous decade. We conclude with a discussion of potential future directions for such research.