Economy-Wide Effects of Forest Policies: A General Equilibrium Assessment from Vietnam

Abstract

Using Vietnam as a case study, we employ an Applied General Equilibrium (AGE) model to test three policy options for managing commercial forestry. Specifically, we examine the impact of an export ban, an increase in the ad valorem royalty by 100%, and an increase of 100% in the export tax. A ban on exports raises domestic capital formation, benefits the domestic consumer, and decreases deforestation. The other two policies have little effect on the utility of the domestic household. The findings demonstrate the need to assess forestry policies in the context of the broader economic structure