Abstract
This chapter presents structure of the global forest product model (GFPM), expressed by equations that link the variables of the forest sector. The model structure is based on the neoclassical theory of competitive markets. The GFPM is designed mainly as a policy analysis tool to project the general future trends in quantities and prices at different stages of transformation under different scenarios. The GFPM integrates the four classical major components of forest sector models: timber supply, processing industries, product demand, and trade. Each year, equilibrium is computed by maximizing the global “net social payoff,” while year-by-year changes are simulated by recursive programming. The model shows how production, consumption, imports, exports, prices, and welfare are likely to change in response to changing economic environments. GFPM simulates dynamic market equilibrium for the global forest sector. The products in the GFPM may be primary products, such as industrial round wood; end products, such as sawn wood, panels, and paper; intermediate products, such as pulp; or recycled products.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call