Abstract
A theoretical model is derived in the utility maximum framework where the representative forest owner maximises his consumption utility. The owner optimises his forest investments and cuttings to obtain this target. It is shown that government cost sharing (loans and grants) has positive private investment effects. These results are not rejected in an econometric analysis of a Finnish regional panel data from Forestry Board Districts in years 1983 to 2000. Significant negative cost sharing effects on timber supply are not found in the data. Unit costs of investments increase wood supply. A strong complementary is found between forest investments and sawlog and pulpwood supplies.
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Linden, M., Leppänen, J. (2003). The impact of government investment assistance on forest investment and timber supply. In: Helles, F., Strange, N., Wichmann, L. (eds) Recent Accomplishments in Applied Forest Economics Research. Forestry Sciences, vol 74. Springer, Dordrecht. https://doi.org/10.1007/978-94-017-0279-9_13
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DOI: https://doi.org/10.1007/978-94-017-0279-9_13
Publisher Name: Springer, Dordrecht
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