The Due diligence system in the EU’s Timber Regulation: non-tariff trade barrier or leverage effect?

This paper presents a novel spatial equilibrium model to analyse the leverage impact of the EU’s Timber Regulation on sustainable timber production. This leverage effect is an argument in favour of FLEGT but it has never been investigated thoroughly, or simultaneously for demand and supply. The leverage effect is measured in terms of the market share of sustainable timber in the total timber consumption and production of a region. Our research finds that FLEGT does not provide an incentive for sustainable timber production and consumption at global level. FLEGT creates a non-tariff trade barrier at the conventional timber markets of important producing regions (Europe and North America). This protectionist situation favours conventional timber which decreases the importance of sustainable timber. In addition, the protectionist situation decreases global welfare

Can timber provision from Amazonian production forests be sustainable?

Around 30 Mm3 of sawlogs are extracted annually by selective logging of natural production forests in Amazonia, Earth's most extensive tropical forest. Decisions concerning the management of these production forests will be of major importance for Amazonian forests' fate. To date, no regional assessment of selective logging sustainability supports decision-making. Based on data from 3500 ha of forest inventory plots, our modelling results show that the average periodic harvests of 20 m3 ha−1 will not recover by the end of a standard 30 year cutting cycle. Timber recovery within a cutting cycle is enhanced by commercial acceptance of more species and with the adoption of longer cutting cycles and lower logging intensities. Recovery rates are faster in Western Amazonia than on the Guiana Shield. Our simulations suggest that regardless of cutting cycle duration and logging intensities, selectively logged forests are unlikely to meet timber demands over the long term as timber stocks are predicted to steadily decline. There is thus an urgent need to develop an integrated forest resource management policy that combines active management of production forests with the restoration of degraded and secondary forests for timber production. Without better management, reduced timber harvests and continued timber production declines are unavoidable

Inventory analysis of the timber industry in Ghana

Background, aim, and scope The timber sector, i.e., forestry and timber industry, plays an important role in the socioeconomic development of Ghana through timber products export. Timber production in this sector is associated with increasing environmental burdens in terms of use of materials and energy, production of emissions and waste, and land use changes. The purpose of this study was to compile a comprehensive life cycle inventory (LCI) to identify the most dominant environmental pressures for five major production lines in the timber industry, and to evaluate the influence of the choice of the functional unit on the results (1 m3, 1 kg, and 1 euro). LCA’s of wood typically base their functional unit on volume, but mass or money may be more appropriate for the rather different products considered in this study. Materials and methods The LCI covers five timber production lines, namely, air-dried lumber, kiln-dried lumber, plywood, veneer, and furniture parts. Three functional units were used for this study to identify the most appropriate basis for a fair comparison of the different timber products (functional units were 1 m3, 1 kg and 1 euro). Questionnaires were administered to thirty selected companies in Ghana. These companies provided data about their material uses, energy requirements, and waste production for their operations from 2000 to 2007. The collected data were first converted into total annual average values, and next extrapolated to reflect the national average data for all 104 active companies. Finally, these data were expressed per functional unit for each of the five product lines on the basis of their production outputs (in volume, mass or money according to functional unit applied). Forest land used changes data was taken from the Ghana Timber Industry Development Division. Emissions for the several activities were taken from literature. Results and discussion Land use change for timber production in Ghana between the estimated periods turned out to be 34.0¿×¿103 ha per year, which will lead to complete deforestation in the year 2023 if continued. The total energy consumed by the timber sector per year was estimated at 1.9¿×¿109 MJ per year. The results showed that CO2 emissions by the timber sector activities per year accounted for 745k tons per year and dominate overall greenhouse gases emissions in the timber sector (changes in carbons storage related to land use changes not included). Wood waste by the timber sector accounted for 0.8 million m3 per year. The enormous wastage of wood contributes enormously to the rapid depletion of the country’s timber resources. The choice of the functional unit influences inventory results. The money-based functional unit, which also seems more appropriate for the different products considered, favors the value-added. Value-added products with strict sustainable forest management policy hold a promising future in terms of sustainability for the timber industry in Ghana. Conclusions This study has yielded good quality primary data unique for LCA research in Africa. This will enhance LCA approaches in Ghana, and allows here identification of the main environmental pressures and their dominantly contributing processes in the timber sector. Land use changes due to forestry form a critical issue and require urgent attention. The chosen functional units’ plays a crucial role in the environmental comparison of production line in the timber sector in Ghana. Recommendations and perspectives A comprehensive and transparent inventory for the timber industry provides the industry with an overview of areas in which material and thus economic savings can be made for the good of both environment and the industry finances. Good data keeping in the Ghanaian timber industry will help to build the required research capacity to develop local familiarity and competence in LCA techniques and applying these techniques will help to further certify tropical timber international markets

Forest Management Zone Design with a Tabu Search Algorithm

Increased conflicts between timber production and environmental protection led some analysts to advocate land-use segregation, often referred to as forest management zoning. The objective of zoning is to create ecologically desirable non-fragmented forest reserves and group timber production areas. We formulate an integer programming model of forest zoning that explicitly addresses clustering of spatial units allocated to timber production and reserve zones while also promoting separation of these zones. A tabu search algorithm is developed, implemented and tested using a case study. The case study results indicate that up to 5% of the net financial return is sacrificed with a 'satisfactory' grouping of units within each zone. A 'good' separation between the reserves and timber production zone is achieved at the cost of further decline of the net financial return up to 11% relative to the unconstrained case.forest planning, integer programming, reserves, tabu search, timber production, zoning

Is there a commercial case for tropical timber certification?

The authors estimate the potential commercial benefits that tropical timber producing countries could enjoy by adopting timber certification schemes. Such benefits are crucial for encouraging the supply of certified timber. Timber certification is a reality: various countries and organizations have launched initiatives for it. The initial response among producing countries was less than positive, but some have come to realize its potential benefits and have begun to adopt timber certification schemes. Tropical timber trade accounts for only a small fraction of tropical timber production, and most of that trade is concentrated among developing countries in Asia and Japan - markets where demand for certified timber is currently weak. Only a small part of the trade reaches the eco-sensitive markets of Europe and the United States, where there is demand for certified timber. Developing countries can benefit commercially from timber certification in two ways: through the"green premium"(consumers'willingness to pay a premium for certified timber"and by averting losses of market share in the tropical timber market from not having timber certified. Based on surveys, on discussions with nongovernmental organizations, on market participants and analysts, and on estimates of price elasticity, the authors develop a scenario for estimating the potential commercial benefits from adopting timber certification. Under this scenario, benefits would not exceed US$500 million a year (roughly 4 percent of all tropical-timber-related revenues earned by developing countries). Timber certification is not expected to provide significant commercial benefits to developing countries in the near future. But timber certification could provide significant rents to individual firms that develop market niche strategies. And producing countries that pursue certification may enjoy longer-term social, economic, and environmental benefits by adopting the better forest management practices required for timber certification.Environmental Economics&Policies,Silviculture,Agribusiness&Markets,Roads&Highways,Forests and Forestry,Environmental Economics&Policies,Forestry,Silviculture,Agribusiness&Markets,Roads&Highways

Tropical timber trade policies : what impact will eco-labeling have?

About 20 percent of the total production of tropical timber is traded internationally. But for Indonesia, Malaysia, Papua New Guinea, and some countries in West-Central Africa, tropical timber trade accounts for more than 50 percent of production. Although the tropical timber trade has often been blamed for deforestation, the authors find that it contributes much less to deforestation than do poor policies for the production of tropical timber. Lack of tenure rights, short and uncertain logging concessions, low stumpage values, and inadequate monitoring of logging activities are among the major policy failures that help deplete the tropical forests. Trade policies, often identified as an instrument for enforcing environmental objectives internationally, are inefficient instruments for correcting domestic distortions, and in the case of tropical timber trade, may affect the environment perversely. Export and import restrictions ultimately depress the value of an already underpriced resource - the forest. Restrictions on log exports, for example, encourage wasteful processing of logs. Unless sound forest management policies are enforced domestically, the net effect could even be an increase in the rate of deforestation. Import restrictions may have a marginal impact, since trade accounts for less than 20 percent of production and most of the tropical timber is imported in Asia, where such restrictions currently do not exist. Even if import restrictions had a significant impact, it would be in a reduction in value of tropical logs that would make alternative uses of the forest lands more profitable - so the rate of deforestation might not be reduced. Eco-labeling's main strength is its capacity to discriminate (through market signals) in favor of timber produced under sound environmental practices. By contrast, bans and boycotts have an indiscriminate, perverse impact. But if eco-labeling is imposed unilaterally by a subset of countries, its effectiveness will be doubtful. It will lead to trade diversion and potentially perverse environmental results, not to mention an increase in GATT trade disputes. Even if eco-labeling is adopted by all importing countries, there could still be trade diversion in tropical timber products because some consumers may not prefer certified timber, given its higher price. Eco-labeling programs should be designed so that producers see them not as a nontariff barrier but as an instrument for capturing the rents associated with prevailing environmental concerns in the developed world. Consumer education is important to the success of such programs, and eco-labeling programs should be designed accordingly.Environmental Economics&Policies,Forestry,Silviculture,Forests and Forestry,Economic Theory&Research