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Tree Planting Subsidies and Land Use Switching between Forestry and Agriculture in the US South

Publication ,  Journal Article
Mei, B; Wear, DN; Li, Y
Published in: Journal of Forest Economics
July 25, 2022

A regime switching model based on real options shows that optimal land use switching boundaries are contingent upon the stochastic behavior (trend and volatility) of timberland and cropland returns, conversion costs, and return correlation. Using this modeling framework applied to timberland and cropland in the US South, tree planting subsidies are shown to increase forest area over baseline projections. However, timber supply feedbacks and partial eligibility for subsidies are shown to generate substantial benefit leakage. Given the context of market feedbacks it’s not clear that tree planting subsidies alone are an effective policy instrument for expanding forest area.

Duke Scholars

Published In

Journal of Forest Economics

DOI

EISSN

1618-1530

ISSN

1104-6899

Publication Date

July 25, 2022

Volume

37

Issue

3

Start / End Page

237 / 257

Related Subject Headings

  • Forestry
  • 1499 Other Economics
  • 1402 Applied Economics
  • 0705 Forestry Sciences
 

Citation

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ICMJE
MLA
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Mei, B., Wear, D. N., & Li, Y. (2022). Tree Planting Subsidies and Land Use Switching between Forestry and Agriculture in the US South. Journal of Forest Economics, 37(3), 237–257. https://doi.org/10.1561/112.00000546
Mei, B., D. N. Wear, and Y. Li. “Tree Planting Subsidies and Land Use Switching between Forestry and Agriculture in the US South.” Journal of Forest Economics 37, no. 3 (July 25, 2022): 237–57. https://doi.org/10.1561/112.00000546.
Mei B, Wear DN, Li Y. Tree Planting Subsidies and Land Use Switching between Forestry and Agriculture in the US South. Journal of Forest Economics. 2022 Jul 25;37(3):237–57.
Mei, B., et al. “Tree Planting Subsidies and Land Use Switching between Forestry and Agriculture in the US South.” Journal of Forest Economics, vol. 37, no. 3, July 2022, pp. 237–57. Scopus, doi:10.1561/112.00000546.
Mei B, Wear DN, Li Y. Tree Planting Subsidies and Land Use Switching between Forestry and Agriculture in the US South. Journal of Forest Economics. 2022 Jul 25;37(3):237–257.
Journal cover image

Published In

Journal of Forest Economics

DOI

EISSN

1618-1530

ISSN

1104-6899

Publication Date

July 25, 2022

Volume

37

Issue

3

Start / End Page

237 / 257

Related Subject Headings

  • Forestry
  • 1499 Other Economics
  • 1402 Applied Economics
  • 0705 Forestry Sciences