Van Lantz

Is there an Environmental Kuznets Curve for clearcutting in Canadian forests

Abstract This study investigates the macroeconomic forces underlying forest clearcutting practices across Canada. In keeping with the relevant literature on environmental degradation, three forces are assumed to influence forest clearcutting: per capita gross domestic product (GDP), technology, and population density. While previous work has used models that assume linear relationships between the latter two variables and environmental degradation, this paper employs a more flexible (quadratic) model. Pooled regression analysis in the Atlantic, Quebec, Ontario, Prairie, and British Columbia regions between 1975-99 indicates that while technological change tends to have an inverted U-shaped relationship with forest area clearcut, population and GDP/capita tend to have the opposite effects. This last variable finding strongly rejects the Environmental Kuznets Curve hypothesis of an inverted U-shaped relationship between GDP/capita and forest area clearcut in Canada.

The valuation of wetland conservation in an urban/peri urban watershed

This study estimates the social benefits of wetland conservation in the Credit River watershed, located in an urban/peri urban area in Southern Ontario, Canada. A stated preference approach was employed to value wetland conservation programs which ranged from retaining the existing wetlands to restoring various levels of acres of wetlands over the 2009–2020 period. A total of 1,407 households completed an internet-based survey which presented trade-offs in binary choice scenarios framed as referenda. Responses were analyzed using various models, one of which was a latent class analysis which segmented respondents into three classes. This econometric approach uncovered significant preference heterogeneity for wetland conservation. Assignment of respondents to the classes suggested that about one-third of the sample was willing to pay small amounts to retain the existing wetlands. An additional third was willing to pay several hundred dollars a year for retention and small positive amounts for additional restoration. The final third were apparently willing to pay considerable sums for retention, but lesser amounts for additional restoration. However, further analysis revealed that respondents in this third class largely constituted yea-sayers. These results suggest caution in interpreting associated economic valuation estimates and highlight the importance of attempting to understand hypothetical bias in wetland and other such valuation studies.

Measuring scale, technology and price effects on value-added production across Canadian forest industry sectors

Abstract Industry analysts have indicated that there is a trend toward more value-added production in the Canadian forest industry. This suggests that the value of output has increased relative to the primary resource costs of production, leaving increased returns available for other production costs. In this paper, investigation is made into the manner in which operational scale, network scale, prices and technology affect value-added production in five sectors of the Canadian forest industry. Findings reveal that, on average, the first three factors tend to increase value-added production in many sectors while the last factor tends to have the opposite effect. These results are used to indicate the manner in which value-added policies can be focused, at a sector-specific level, to realize the full value-added potential that the Canadian forest industry has to offer.

Benefit-cost analysis of spruce budworm (Choristoneura fumiferana Clem.) control: Incorporating market and non-market values

This study employs a benefit-cost analysis framework to estimate market and non-market benefits and costs of controlling future spruce budworm (Choristoneura fumiferana) outbreaks on Crown forest lands in New Brunswick, Canada. We used: (i) an advanced timber supply model to project potential timber volume saved, timber value benefits, and costs of pest control efforts; and (ii) a recent contingent valuation method analysis that evaluated non-market benefits (i.e., changes in recreation opportunities and existence values) of controlling future spruce budworm outbreaks in the Province. A total of six alternative scenarios were evaluated, including two uncontrolled future budworm outbreak severities (moderate vs. severe) and, for each severity, three control program levels (protecting 10%, 20%, or 40% of the susceptible Crown land forest area). The economic criteria used to evaluate each scenario included benefit-cost ratios and net present values. Under severe outbreak conditions, results indicated that the highest benefit-cost ratio (4.04) occurred when protecting 10% (284,000 ha) of the susceptible area, and the highest net present value (

Testing the Environmental Kuznets Curve Hypothesis with Bird Populations as Habitat-Specific Environmental Indicators: Evidence from Canada

111 M) occurred when protecting 20% (568,000 ha) of the susceptible area. Under moderate outbreak conditions, the highest benefit-cost ratio (3.24) and net present value (

Assessing market and non-market costs of freshwater flooding due to climate change in the community of Fredericton, Eastern Canada

58.7 M) occurred when protecting 10% (284,000 ha) of the susceptible area. Inclusion of non-market values generally increased the benefit-cost ratios and net present values of the control programs, and in some cases, led to higher levels of control being supported. Results of this study highlight the importance of including non-market values into the decision making process of forest pest management.

Forest and economic impacts of alternative management strategies on Crown land in New Brunswick

The traditional environmental Kuznets curve (EKC) hypothesis postulates that environmental degradation follows an inverted U-shaped relationship with gross domestic product (GDP) per capita. We tested the EKC hypothesis with bird populations in 5 different habitats as environmental quality indicators. Because birds are considered environmental goods, for them the EKC hypothesis would instead be associated with a U-shaped relationship between bird populations and GDP per capita. In keeping with the literature, we included other variables in the analysis-namely, human population density and time index variables (the latter variable captured the impact of persistent and exogenous climate and/or policy changes on bird populations over time). Using data from 9 Canadian provinces gathered over 37 years, we used a generalized least-squares regression for each bird habitat type, which accounted for the panel structure of the data, the cross-sectional dependence across provinces in the residuals, heteroskedasticity, and fixed- or random-effect specifications of the models. We found evidence that supports the EKC hypothesis for 3 of the 5 bird population habitat types. In addition, the relationship between human population density and the different bird populations varied, which emphasizes the complex nature of the impact that human populations have on the environment. The relationship between the time-index variable and the different bird populations also varied, which indicates there are other persistent and significant influences on bird populations over time. Overall our EKC results were consistent with those found for threatened bird species, indicating that economic prosperity does indeed act to benefit some bird populations.

Landowner preferences for wetlands conservation programs in two Southern Ontario watersheds

There is a general consensus that climate change will increase the frequency and severity of freshwater flooding in many parts of the world. Communities prone to such flooding have struggled to understand the manner in which this will affect them (in both economic and social terms) and the appropriate way to adapt. In this study, we conduct a case-study investigation into the costs of freshwater flooding due to climate change along the Saint John River in Fredericton, NB, Canada. We develop a four-step framework that combines extreme event analysis, downscaled general circulation models, hydrologic analysis, and the contingent valuation method. Using this framework, together with primary data on a 2005 flooding event, we estimate market and non-market annual average flood damage under a number of climate and population scenarios. We find that non-market costs can represent up to 50% of total household costs of flooding events, and 23–42% of the total costs of flooding due to climate change, depending on the different climate and population scenarios considered. Incorporating such costs into flood adaptation planning may substantially increase support for active adaptation activities, especially in ‘worst case’ climate scenarios.

Which Factors Contribute to Environmental Behaviour of Landowners in Southwestern Ontario, Canada?

This study evaluated the long-run economic impacts of four alternative forest management strategies on New Brunswick’s Crown land forests: two volume-based strategies focused on business as usual (BAU) and intensive (INT) timber volume production and two value-based strategies focused on forest manufacturing sector contribution to gross domestic product (GDP) and government surplus (GOV). These were defined within an extended wood supply model that incorporated both economic indicators (logging sector profit, government surplus, forest manufacturing sector shipments, and forest manufacturing sector GDP) and timber supply indicators (harvest levels, operable growing stock, and products). Results showed that a number of indicator trade-offs emerge under each strategy. For instance, the GOV strategy produced the highest present value government surplus value (at

Role of pest management in sequestering carbon in forests: integration with CBM-CFS3 and economic analyses

1.2 billion, exceeding INT, BAU, and GDP strategies by