Source: AUBURN UNIVERSITY submitted to NRP
THE POLITICAL AND INSTITUTIONAL DIMENSIONS OF MARKET-BASED INSTRUMENTS FOR FOREST ECOSYSTEM SERVICES AND INTERNATIONAL FORESTRY POLICY.
Sponsoring Institution
National Institute of Food and Agriculture
Project Status
COMPLETE
Funding Source
MCINTIRE-STENNIS
Reporting Frequency
Annual
Accession No.
0227410
Grant No.
(N/A)
Cumulative Award Amt.
(N/A)
Proposal No.
(N/A)
Multistate No.
(N/A)
Project Start Date
Oct 1, 2011
Project End Date
Sep 30, 2016
Grant Year
(N/A)
Program Code
[(N/A)]- (N/A)
Recipient Organization
AUBURN UNIVERSITY
108 M. WHITE SMITH HALL
AUBURN,AL 36849
Performing Department
School of Forestry and Wildlife Sciences
Non Technical Summary
The overall objective of this project is to find an effective, market-based mechanism to better protect the environment. The significance of this project lie in the facts that societal demand for various ecosystem services are rising, that there is an increasing gap between the demand and the supply of these services, and that market-based instruments increasingly are viewed as a way to solve this social and environmental problem. Yet very little is known about the initiation, implementation, and, especially, performance of these market-based instruments, and the possibility of expanding them. The expected impacts of this project lies in better protection of the forest-based environmental goods.
Animal Health Component
(N/A)
Research Effort Categories
Basic
(N/A)
Applied
(N/A)
Developmental
(N/A)
Classification

Knowledge Area (KA)Subject of Investigation (SOI)Field of Science (FOS)Percent
6056110301030%
6116120306030%
1230330310020%
1120860301020%
Knowledge Area
605 - Natural Resource and Environmental Economics; 112 - Watershed Protection and Management; 611 - Foreign Policy and Programs; 123 - Management and Sustainability of Forest Resources;

Subject Of Investigation
6110 - Economy of the United States and sectors thereof; 6120 - International economy and sectors thereof; 0330 - Wetland and riparian systems; 0860 - Endangered species;

Field Of Science
3010 - Economics; 3060 - Political science; 3100 - Management;
Goals / Objectives
The objectives of this project are to (1)Analyze the Initiation, Design, Implementation, Cost-effectiveness, and Efficiency of Market-based Instruments for Forest Ecosystem Services in the U.S., (2) Explore the Political and Institutional Dimensions of International Forest Policy Dialogue and Cooperation, and (3)Investigate the Competitive Advantage of Plantation Forests in the U.S. and other Countries. The expected outcomes from this project includes (1) A better understanding about the economics of market-based instruments for ecosystem service and international forest policy and (2)Provid some implementation guidelines of market-based instruments in the U.S. and elsewhere.
Project Methods
Benefit-cost analysis, comparative analysis, and political economy approaches will be the primary methods used in this project. The results of this projects will be presented in conferences and published in refereed articles and popular magazines.

Progress 10/01/11 to 09/30/16

Outputs
Target Audience:Scienfiic community, forest industry, forest landowners Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?Three graduate students. One post-doc fellow How have the results been disseminated to communities of interest?Absolutely. For example, our research results of this project have already been cited by more than 100 times. What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? Other than an on-going study on conservation banking program, we have accomplished all the objectives of this project.

Publications

  • Type: Journal Articles Status: Published Year Published: 2016 Citation: Jiang, H., D. Zhang, and W. Wei. 2016. Managerial Behavior and Financial Performance of Chinas State-Owned Forest Enterprises. International Forestry Review 18(2): 192-202.
  • Type: Journal Articles Status: Published Year Published: 2016 Citation: Parajuli, R., and D. Zhang. 2016. Price Linkages between Spot and Futures Markets for Softwood Lumber. Forest Science. 62(5): 482-489.
  • Type: Journal Articles Status: Published Year Published: 2016 Citation: Parajuli, R., and D. Zhang. 2016. Welfare Impacts of the 2006 United States-Canada Softwood Lumber Agreement. Canadian Journal of Forest Research 46: 950-958.
  • Type: Journal Articles Status: Published Year Published: 2016 Citation: Zhang, D., and Parajuli. 2016. Policy Impacts Estimates Are Sensitive to Data Selection in Empirical Analysis: Evidence from the United States-Canada Softwood Lumber Trade Dispute. Canadian Journal of Forest Research 46: 1343-1347.
  • Type: Journal Articles Status: Published Year Published: 2016 Citation: Parajuli, R., D. Zhang, and S.J. Chang. 2016. Modeling Stumpage Markets Using Vector Error Correction vs. Simultaneous Equation Estimation Approach: A Case of the Louisiana Sawtimber Market. Forest Policy and Economics 70:16-19.
  • Type: Journal Articles Status: Published Year Published: 2016 Citation: Zhang, D. 2016. Payments for Forest-based Environmental Services: A Close Look. Forest Policy and Economics 72: 78-84.
  • Type: Journal Articles Status: Accepted Year Published: 2017 Citation: Parajuli, R., D. Zhang. Forthcoming. An Econometric Study of the Hardwood Sawtimber Stumpage Market in Louisiana. Forest Products Journal.
  • Type: Journal Articles Status: Accepted Year Published: 2017 Citation: Zhang D., Y. Lin, D. Sasatani. Forthcoming. Dealing with the Housing Crisis: A Study on Softwood Sawmills in the Southern U.S. Forest Products Journal.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2016 Citation: Zhang, D. 2016. The Lacey Act Amendment of 2008 and the U.S. Trade Balance in Forest Products. Presented at Asia-Pacific Forestry Convention, Clark Freeport Zone, Philippines. February 20.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2016 Citation: Zhang, D. 2016. The Role of Planted Forests in the Global Economy and the Economics of Planted Forest Development. Presented at International Scientific Seminar Sustainable Intensification of Planted Forests: How Far Can We Go? Biarritz, France. June 13.
  • Type: Conference Papers and Presentations Status: Published Year Published: 2016 Citation: Zhang, D. 2016.Timberland Asset Pricing in the United States: What Does It Have to Do with Faustmann Formula? Presented at the 5th International Faustmann Symposium. Beijing, China. October 18.


Progress 10/01/14 to 09/30/15

Outputs
Target Audience:Forest landowners, forest industry, timberland investment management organizations, government agencies. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided?2 Ph.D. students, 1 master student, and 1 post-doc. How have the results been disseminated to communities of interest?Semiars, conferences, and refereed publications. What do you plan to do during the next reporting period to accomplish the goals?To accomplish all the remaining projects/publish all the working papers associated with this project.

Impacts
What was accomplished under these goals? Progress has been made on several fronts: (1) a article on market-based instruments for environemtnal services have been published; (2) two articles on institutional timberland ownership have been published; (3) article on the competitiveness of sawmill industry has been published.

Publications

  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Zhang, D. A. Stenger, and P.A. Harou. 2015. Policy Instruments for Developing Planted Forests: Theory and Practices in China, the U.S., Brazil, and France. Journal of Forest Economics 21:223-237
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Sasatani. D., and D. Zhang. 2015. The Patten of Softwood Sawmill Closures in US South: A survival Analysis. Forest Science 61(4/5): 635-643
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Sasatani. D., and D. Zhang. 2015. A Review and Quantitative Analysis of Southern Yellow Pine in Japanese Housing and Decking Markets. Forest Products Journal 65(5/6): 239-246
  • Type: Journal Articles Status: Accepted Year Published: 2016 Citation: Zhang, D. Payments for Forest-based Environmental Services: A Close Look. Forest Policy and Economics. forthcoming
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: 4. Zhang, D., X. Sun, B. Butler, and J. Prestemon. 2015. Harvesting Choices and Timber Supply among Landowners in the Southern United States. Canadian Journal of Agricultural Economics 63(3): 409-429.
  • Type: Journal Articles Status: Published Year Published: 2015 Citation: Sun, X., D. Zhang, and B. Butler. 2015. Timberland Ownerships and Reforestation in the Southern United States. Forest Science 61(2): 336-343.


Progress 10/01/13 to 09/30/14

Outputs
Target Audience: Progress has been made on (1) valuing forest ecosystem services, (2) timber insurance, and (3) industrial timberland ownership Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? Nothing Reported How have the results been disseminated to communities of interest? Through journal articles, conference presentations and individual communications. What do you plan to do during the next reporting period to accomplish the goals? Complete studies on institutional timberland ownership.

Impacts
What was accomplished under these goals? We have studied the implementation and efficiency of market-based instruments for forest ecosystem services in the US and elsewhere and the compertitive advantage of forest plantation development in the U.S. and other countries.

Publications

  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Zhang, D., and A. Stenger. 2014. Value and Valuation of Forest Ecosystem Services. Journal of Environmental Economics and Policy. DOI: 10.1080/21606544.2014.980852
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Zhang, D., and A. Stenger. 2014. Timber Insurance: Perspectives from A Legal Case and A Preliminary Review of Practices throughout the World. New Zealand Journal of Forestry Research 44(Suppl 1): S9
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Li, Y., and D. Zhang. 2014. Industrial Timberland Ownership and Financial Performance of U.S. Forest Products Firms. Forest Science 60(3): 569-578.
  • Type: Journal Articles Status: Published Year Published: 2014 Citation: Zhang, L., Z. Zhang, K. Zhang, Z. Zhang, X. Chen, S. Zhou, G. Dai, and D. Zhang. 2014. Long-term Timber Supply from State-owned Forests in Northeastern China. International Forestry Review 16(3): 310-318.
  • Type: Conference Papers and Presentations Status: Other Year Published: 2014 Citation: Zhang, D. 2014. Payment for Forest Environmental Services through Private and Political Markets. Society of American Foresters Annual Convention. Salt Lake City. October 5-11.


Progress 01/01/13 to 09/30/13

Outputs
Target Audience: The audiences reached are many, probably in the order of several hundreds. Most of these audiences are economists, students, practioners, and policy-makers that participated in conferences we we made presentations. In addition, there are unknown numbers of readers of our refereed publications. Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? This project allows us hire 1 post-doc and trains 3 graduate students (1 master and 2 Ph.d.) so far. How have the results been disseminated to communities of interest? Very much so, in publications, presentation, as well as small group meetings with policy-makers, landowners, and producers. What do you plan to do during the next reporting period to accomplish the goals? Publishing all the working papers that we have made presentations in international conferences.

Impacts
What was accomplished under these goals? We have made significent progress on all fronts. We have had 7 articles and book chapters published related to all these objectives. We have also made 6 presentations in international conferences. We expect that another 3-4 articles will come out from our efforts in the reporting period.

Publications

  • Type: Book Chapters Status: Published Year Published: 2013 Citation: Zhang, D. 2013. The Political Economy in Forest Policy-making: Economic Efficiency and Beyond. P. 165-181. in S. Kant (ed.) Post-Faustmann Forest Resource Economics: New Frontiers of Natural Resource Economics.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Zhang, D., L. Meng, and M. Polyakov. 2013. Determinants of the Prices of Bare Forestlands and Pre-merchantable Timber Stands: A Spatial Hedonic Study. Forest Science 59(4): 400-406.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Nagubadi, R., and D. Zhang. 2013. U.S. Imports for Canadian Softwood Lumber in the Context of Trade Dispute: A Co-integration Approach. Forest Science 59(5): 517-523.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Meng, L., and D. Zhang. 2013. Impacts of Property Tax on Land Use Change Decisions in Georgia. Urban Ecosystems 16: 3-12.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: D. Zhang, and X. Sun 2013. Assistance Foresters and Nonindustrial Private Forest Management in Alabama. Southern Journal of Applied Forestry 37(4): 189-195.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Harou, P., C. Cheng, and D. Zhang. 2013. The Alternate Test in Forestry. Forest Policy and Economics 34: 31-46.
  • Type: Journal Articles Status: Published Year Published: 2013 Citation: Kant, S., S. Wang, P. Deegen, M. Hostettler, R. von Detten, T. Howard, D. Laband, C. Montgomery, N. Robert, W. Sekot, G. Valatin, and D. Zhang. 2013. New Frontiers in Forest Economics. Forest Policy and Economics 35: 1-8.


Progress 01/01/12 to 12/31/12

Outputs
OUTPUTS: Progress has been made on the political economy studies. Further, progress has been made on the public funded payment for ecosystem services project (i.e., Conservation Reserve Program). However, efforts on collecting price data on wetland mitigation bank program has not been successful. PARTICIPANTS: Daowei Zhang, Xing Sun, Eric Dooly TARGET AUDIENCES: Forest landowners Investors Conservation organizations Policy makers Legislators Interest Groups PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
We found that political campaign donations from interest groups to U.S. Senators have a significant influences on the senators' position on trade dispute. Further, payment for ecosystem services work well in some areas such as wetland, endangered species but not others (such as climate change)this is because the U.S. government has the political will to set a cap (e.g., no-net-loss in wetland, no destruction of endangered species habitat)which enhance the emergence of a market in some ecosystem services (wetland, habitat conservation), but not in others. Thus, government regulation that reflects its political will is important in the development of payment for ecosystem services markets.

Publications

  • Godwin, Joseph, and D. Zhang. 2012. Political Pressure: An Examination of U.S. Senators Actions in Restricting Canadian Softwood Lumber Imports. Canadian Journal of Agricultural Economics 60 (2): 263-274.
  • Meng, L., and D. Zhang. 2012. Impacts of Property Tax on Land Use Change Decisions in Georgia. Urban Ecosystems. DOI:10.1007/s11252-011-0172-9.
  • Zhang, D., B. Butler, and R. Nagubadi. 2012. Institutional Timberland Ownership in the U.S. South, Magnitude, Location, Dynamics, and Management. Journal of Forestry 110 (7): 355-361.