Some Comparative Statics Exercises with a Small Scale Model of the Italian Forest Sector

Signorotto, E. (1985). Some Comparative Statics Exercises with a Small Scale Model of the Italian Forest Sector. IIASA Working Paper. IIASA, Laxenburg, Austria: WP-85-055

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Abstract

The objective of the Forest Sector Project at IIASA is to study long-term development alternatives for the forest sector on a global basis. The emphasis in the Project is on issues of major relevance to industrial and governmental policy makers in different regions of the world who are responsible for forestry policy, forest industrial strategy, and related trade policies.

The key elements of structural change in the forest industry are related to a variety of issues concerning demand, supply, and international trade of wood products. Such issues include the development of the global economy and population, new wood products and substitution for wood products, future supply of roundwood and alternative fiber sources, technology development for forestry and industry, pollution regulations, cost competitiveness, tariffs and non-tariff trade barriers, etc. The aim of the Project is to analyze the consequences of future expectations and assumptions concerning such substantive issues.

The research program of the Project includes an aggregated analysis of long-term development of international trade in wood products, and thereby analysis of the development of wood resources, forest industrial production and demand in different world regions. The analysis is carried out by means of a model of the sector. The purpose of this article is to describe an Italian country component, suitable for analysis of the European forest sector. Given that similar components are created for other countries, a European model results by replacing export demand and import supply functions with explicit trade flow activities (for products that have components in common for all countries).

This work was carried out while the Author was in the Young Scientists Summer Program at IIASA in 1984.

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