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Canadian Public Policy Forestry in Canada: Transitions and Emerging Policy Issues Author(s): M. K. Luckert and F. J. Salkie Source: Canadian Public Policy / Analyse de Politiques, Vol. 24, Special Supplement 2 on Forestry Issues in Canada (May, 1998), pp. S1-S10 Published by: University of Toronto Press on behalf of Canadian Public Policy Stable URL: http://www.jstor.org/stable/3551875 . Accessed: 16/06/2014 03:51 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected]. . University of Toronto Press and Canadian Public Policy are collaborating with JSTOR to digitize, preserve and extend access to Canadian Public Policy / Analyse de Politiques. http://www.jstor.org This content downloaded from 188.72.126.118 on Mon, 16 Jun 2014 03:51:00 AM All use subject to JSTOR Terms and Conditions

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Canadian Public Policy

Forestry in Canada: Transitions and Emerging Policy IssuesAuthor(s): M. K. Luckert and F. J. SalkieSource: Canadian Public Policy / Analyse de Politiques, Vol. 24, Special Supplement 2 onForestry Issues in Canada (May, 1998), pp. S1-S10Published by: University of Toronto Press on behalf of Canadian Public PolicyStable URL: http://www.jstor.org/stable/3551875 .

Accessed: 16/06/2014 03:51

Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at .http://www.jstor.org/page/info/about/policies/terms.jsp

.JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range ofcontent in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new formsof scholarship. For more information about JSTOR, please contact [email protected].

.

University of Toronto Press and Canadian Public Policy are collaborating with JSTOR to digitize, preserveand extend access to Canadian Public Policy / Analyse de Politiques.

http://www.jstor.org

This content downloaded from 188.72.126.118 on Mon, 16 Jun 2014 03:51:00 AMAll use subject to JSTOR Terms and Conditions

Forestry in Canada: Transitions and

Emerging Policy Issues

M.K. LUCKERT AND F.J. SALKIE

Department of Rural Economy University of Alberta Edmonton, Alberta

Dans cet article nous fournissons un survol de la foresterie au Canada et introduisons quelques-unes des tendances

emergentes et des questions qui faqonnent le secteur forestier canadien. Nous fournissons de l'information con- textuelle sur les ressources naturelles, le r81e de la foresterie dans les dconomies provinciales et nationale de meme que sur le cadre gdndral de politiques 'a partir duquel les questions forestieres sont analysdes. Nous ddcri- vons les tendances dmergentes dans l'industrie forestiere en termes des changements de la valeur des ressources

forestieres et de l'internationalisation des questions forestieres. Nous soulignons un ddfi commun aux hommes

politiques, celui de ddvelopper une politique environnementale flexible qui pourra repondre aux changements dans les valeurs des gens tout en assurant que le secteur des produits forestiers demeurera compdtitif internationalement. En faisant rdf6rence aux articles de cette parution spdciale nous soulignons quelques rdactions, en termes de politiques publiques, a ces tendances dmergentes et quelques politiques alternatives que le Canada

pourrait appliquer.

In this paper we provide an overview of forestry in Canada and introduce some of the emerging trends and policy issues that are shaping the Canadian forest sector. We provide background information on the natural resource base, the role of forestry in national and provincial economies, and the general policy framework within which

forestry issues are addressed. We describe emerging trends in the forest industry in terms of changing values of forest resources and the internationalization of forest issues. We highlight a general challenge to policymakers, that of developing a flexible policy environment that can respond to changing public values while ensuring that the forest products sector remains competitive in a global market. By referring to subsequent papers in this

special issue, we highlight some of the public policy reactions to these emerging trends and some of the alterna- tive policy options that may be implemented in Canada.

INTRODUCTION

After Russia, Canada has the world's largest for- est cover, some 453 million hectares. Much of

Canada's forests remain in their natural state, mainly because many regions are difficult to access and, in terms of global forestry, they are marginal in that the costs of access exceed the benefits of timber harvest. This is true particularly in the north where

trees grow slowly, sometimes taking 200 years to reach maturity. However, even in British Columbia's coastal region, where concerns have been expressed about the disappearing temperate rain forest, 1.5 million hectares of undeveloped watersheds remain, with 18.3 percent of those already protected and an additional 10.3 percent being considered for potential protection (British Columbia Ministry of Forests 1992). In the boreal forest zone that covers most of Canada,

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S2 M.K. Luckert and EJ. Salkie

exploitation had been limited by broadleaf species, which, until recent developments in pulping technol-

ogy, had been considered weed species. Now large ar- eas located immediately north of the Great Plains are

being harvested for pulpwood, but areas further north remain relatively untouched by harvest systems.

Public ownership of forestlands characterizes

Canada, with federal and provincial governments together owning more than 90 percent of all forestlands. This is greater by far than for any other

major forest jurisdiction, with the exception of the US Pacific Northwest (56 percent public ownership) and the former Soviet states (100 percent state own-

ership). Not surprisingly, public forest policy in Canada is paramount. Exploitation of Canada's for- ests has almost always been driven by the (real or

perceived) need for regional development and the desire of governments to collect the rents associ- ated with natural forests. Forest companies continue to receive rights to harvest timber in exchange for

creating jobs and payment of stumpage fees and other taxes. More recently, governments have sought to balance timber harvesting with environmental

concerns, under the rubric of multiple use. While

reducing fibre availability in some cases, govern- ments continue to be interested in employment, hop- ing to squeeze more jobs out of the sector by en-

couraging secondary manufacturing.

In addition to the above policy issues, interna- tional forestry issues are important for Canada. An

ongoing trade dispute with the US about lumber, international certification of forest management practices, use of chlorine (versus mechanical and

closed-loop processes) in pulp making, and envi- ronmentalist lobbying against Canadian forest prod- ucts have been on the policy agenda at one time or another in the past several years. The purpose of this edition of Canadian Public Policy -Analyse de Politiques is to explore only a small number of cur- rent and ongoing policy issues relating to Canada's forests and its forest industry. Specifically, this edi- tion investigates changing values of forest resources

and the internationalization of forestry issues, and how public policy is responding to these changes.

In this first paper, we provide an overview of for-

estry in Canada that includes information regarding the natural resource base, the role of forestry: in the national and provincial economies, and the general policy framework within which forestry issues are addressed. We then describe how the contributions in this issue identify some emerging trends in for- est policy.

BACKGROUND TO CANADA'S FOREST SECTOR

Canada has eight major forest regions that house more than 200,000 species of flora and fauna.1 The

largest of these, the boreal forest, is present in every province and territory except Nova Scotia and Prince Edward Island. Although Canada's forests are

largely dominated by coniferous species, deciduous

species are frequent. Deciduous trees include ten

species of maple with one or more of these species growing in every province and territory of Canada.

Forests make up almost 42 percent of Canada's

roughly 1 billion hectares (Canadian Council of Forest Ministers 1997). This area represents approxi- mately 22 percent of the forests covering industri- alized countries (World Resources Institute 1994). Of these industrialized countries, Canada has the most forested area per person at approximately 17 hectares. Some 57 percent of Canada's forestland is considered to be "commercial forest" capable of

producing a range of timber and non-timber prod- ucts (Canadian Council of Forest Ministers 1997). But only approximately half of this commercial area is currently managed for timber production. The remainder is either unallocated (38 percent) or pro- tected (12 percent). Of the 237 million hectares in the commercial forest, softwoods make up 63 per- cent, mixed-woods 22 percent, and deciduous spe- cies 15 percent.

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Forestry in Canada: Transitions and Emerging Policy Issues S3

Approximately 44 percent of Canada's commer- cial forests were, in 1993, considered to be "ma-

ture, old, or mixed-aged forests," with a slightly lower amount (40 percent) in the "young forest"

category. Despite the "old-growth characteristics" of much of Canada's forests, Canada's forests are

quite dynamic. During 1994, 11.6 million hectares of forestland in Canada suffered from moderate to severe insect defoliation, and 6.2 million hectares were burned by forest fires. These figures compare with an annual timber harvested area of approxi- mately 1 million hectares in 1994. Despite losses of 4.5 billion m3 between 1979 and 1993, due to in-

sect, fire, disease, and harvesting, the net commer- cial forest volume increased by approximately 1 billion m3, due to the growth of regenerated and

standing timber.

Canadian Forest Products in International, National and Provincial Economies Canada is the largest player in the world's $150 bil- lion wood products export market, accounting for

approximately 20 percent of the market in 1994.

Although Canada's share of the world market has been decreasing, from about 23 percent in 1965, this decline has occurred in a market that has increased some 3.5 times between 1961 and 1990. Canada's

exports of lumber accounted for 46 percent of world

trade, while Canada's share of world newsprint and

pulp exports in 1994 were, respectively, 53 percent and 34 percent. In general, Canada's share of world

newsprint markets has decreased over time, while lumber has captured an increasing share and pulp has maintained a relatively constant share. All told, forest product exports contributed $27.8 billion

(1994) to Canada's balance of trade, with shipments worth $49.3 billion (1993). Approximately 70 per- cent of Canada's exports go to the United States, with Japan and the European Union receiving 12

percent and 9 percent (1994), respectively.

Domestically forestry is a significant sector in the national economy, contributing $19.8 billion

(1994) to GDP. In 1993, 46 percent of the sales of

Canadian wood products occurred within Canada. In 1995, the forest products sector created 369,000 direct jobs, and 511,000 jobs indirectly. Together forest-related jobs account for approximately 1 job in 15 for the entire Canadian economy.

The distribution of the forest industry across Canada is summarized in Figures 1 and 2.2 From

Figure 1 it is clear that BC exports the lion's share of Canada's forest products, consisting largely of softwood lumber with significant amounts of

woodpulp. Quebec and Ontario are significant pro- ducers of newsprint and softwood lumber. The im-

portance of the forestry sector to domestic consump- tion, or the relative size of the forestry sector to the size of the provincial economy is not captured in

Figure 1. Figure 2 indicates the regional importance of forest products; the proportions of jobs attribut- able directly and indirectly to the forest products sector were provided by province. All provinces are shown to have significant forestry sector employ- ment with British Columbia, New Brunswick, and

Quebec having the highest percentages.

Non-Timber Goods and Services Canada's forests are increasingly recognized for their importance beyond production of commercial timber products. As mentioned, Canada's forests

provide habitat for over 200,000 species of plants and animals, some of which are considered to be in

jeopardy. Table 1 indicates the numbers of forest-

dwelling species at risk as of 1995. Wood-harvesting practices have been altered and protected areas set aside. Between 1960 and 1996, the protected area increased from 22.1 to 78.8 million hectares. Pro- tected areas now occupy approximately 7.9 percent of Canada's total area, with both federal and pro- vincial governments having accepted goals of rais-

ing this to 12 percent. Towards this end, approxi- mately 100 protected areas were set aside in 1995-

96 alone, totaling 2.5 million hectares.

Canada's forests also play an important role in

global carbon cycles, and are significant for global

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S4 M.K. Luckert and F.J. Salkie

FIGURE 1 Value of Forest Product Exports by Province

Softwood Lumber I Wood Pulp lO Newsprint 14000

1 12000 x LU 10000 o

8000 75 o 6000

4000

2000

0

N NI Nb

Source: Author's compilation based on Natural Resources Canada (1996).

FIGURE 2 Production of Direct and Indirect Jobs Attributable to the Forest Sector

0.12

0.1

0 0.08 U-

0.06 o 0.06

0.04 0

0.02

cb~N

Source: Author's compilation based on Natural Resources Canada (1996).

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Forestry in Canada: Transitions and Emerging Policy Issues S5

TABLE 1 Numbers of Species at Risk, 1995

Category Plants Birds Mammals

Endangered 11 5 3 Threatened 16 4 3 Vulnerable 12 10 11

warming policy (Forestry Canada 1993). Canada's forest biomass, soils, and products store approxi- mately 89 billion tonnes of carbon, while forest

peatlands contain 135 billion tonnes. The forest sec- tor released approximately 163 million tonnes of carbon to the atmosphere in 1986. Some 17 percent of this amount was due to industrial activity, with the remainder due to natural processes. During the same period, 235.1 million tonnes of carbon were accumulated within the forest sector for a net sur-

plus of 72.1 million tonnes. Including all sectors, Canada contributes approximately 2 percent to glo- bal carbon emissions with net emissions of approxi- mately 120 million tonnes. Economic aspects of carbon sequestration and forestry's role in global warming are discussed in this special issue by Stennes, Krcmar-Nozic, and van Kooten.

Forest-related tourism and recreation are also

important components of the forest landscape. As an indicator of the importance of forest-based rec-

reation, national park visits increased between 1988 and 1994 from approximately 25 million to 30 mil-

lion, with many from foreign countries, such as

Japan and Germany. Banff National Park alone re- ceived more than 7.6 million visitors.

Canadian Forest Policy Frameworks Regulatory jurisdiction over Canada's forests was

largely transferred from federal to provincial hands in 1930 (Moen 1990). The federal government did, however, maintain control over fisheries and Indian

affairs, both of which may have major impacts on

forest regulatory actions. The federal government has also been active in forest policy, dealing with issues relating to climate change, establishing an international system of model forests, and establish-

ing criterion, indicators, and certification standards for sustainable forest management practices.

The provinces have, for the most part, maintained forested areas under provincial government control

(Figure 3). Overall, 94 percent of the forested land is publicly owned with 71 percent under provincial jurisdictions and 23 percent under federal and terri- torial jurisdictions. Proportionately, the larger pri- vate holdings are located primarily in the eastern

provinces of Nova Scotia and New Brunswick, al-

though significant forest lands in Quebec and On- tario are in private lands (Figure 3).

Despite the predominance of public ownership, forest resources are largely harvested and frequently managed by private companies or individuals. The

provincial policy frameworks that set out the con- ditions for private parties to operate on Crown lands are known as forest tenures. These conditions

specify what tenure holders can and cannot do, and are increasingly administered within land-use plan- ning frameworks. Although tenure arrangements vary within and between provinces, there are simi- larities that emerge between large, medium, and small tenures (Haley and Luckert 1990).

Larger tenures generally allow integrated forest

companies rights to harvest an annual allowable cut

(AAC) within a defined area of sufficient size to

supply a wood processing facility. The large econo- mies of scale associated with manufacturing pulp cause most pulp mill operators to hold these types of tenures. Agreements are generally 25 years long and may have provisions that allow them to be re- newed or replaced with a new 25-year term every 5

years. The private company is generally responsi- ble for most aspects of forest management that must follow prescribed standards for harvesting, regen- eration, and non-timber forest values. The companies'

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S6 M.K. Luckert and F]J. Salkie

FIGURE 3 Ownership Categories by Province

90000 i Federal EJ Private O Provincial

80000 - Q 70000

o 60000 I

0 50000

40000

=$ 30000 0

- 20000 .

10000

O

-e C,

5~Z ~~0

Source: Author's compilation based on Natural Resources Canada (1996).

plans and field operations are generally monitored and policed by provincial forest services.

Medium-sized tenures are frequently held by large integrated companies or smaller firms. These tenures generally provide rights for a given volume of timber that may be cut in various places within a forest management unit. It is common for such ten- ures to be allocated to sawmills that have smaller economies of scale than pulp mills. These types of

agreements are generally 10 to 15 years long with

options for renewal and/or replacement. Manage- ment responsibilities are generally less than for the

large-sized tenures, with the government generally responsible for calculating the AAC, and sometimes for forest renewal. As with large forest tenures, there are generally highly detailed regulations governing harvesting, regeneration, and the maintenance of non-timber values.

Small-sized tenures may allocate rights to har- vest miscellaneous types of timber for various pur- poses. In general, these tenures are held by small

firms or private individuals over periods of less than five years. These tenures are generally not renew- able but may be applied for repeatedly. Management responsibilities usually remain with the provincial forest services that conduct spot checks on harvest-

ing to ensure that practices fall within regulations.

Tenure holders must generally pay a number of fees, the most important being stumpage. Stumpage is a price per cubic meter that is levied on all timber cut by the tenure holder. A variety of stumpage col- lection systems are in place to capture some of the forest wealth on behalf of the public (Luckert and Bernard 1993). How governments capture rent

(wealth) is the topic of the paper by Grafton, Lynch and Nelson in this special issue.

Underlying most federal and provincial policy initiatives is a concept of "Sustainable Forest Man-

agement." This emerging paradigm seeks to define means of sustainably managing multiple forest re- sources among frequently competing uses in order to further social objectives. Concerns over the

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Forestry in Canada: Transitions and Emerging Policy Issues S7

sustainability of historic practices have brought a

great deal of attention to natural processes and how current forest uses may better mimic such processes. However, concerns have been raised about the de-

gree to which a harvesting pattern that mimics, for

example, a forest fire, contributes to or inhibits natu- ral ecological processes.

Transitions The forest industry is in a state of transition. As part of an increasingly global marketplace, Canada's domestic industry cannot be insulated from changes elsewhere. Some of these changes, such as increas-

ing environmental activism, are also a part of the Canadian landscape but others, such as changing patterns of trade, are exogenous influences on our domestic industry.

Changing values are driving many new policy initiatives in Canada's forest sector. In addition to timber outputs, forests have come to symbolize the health of the planet, are recognized as a source of

biodiversity and provide many environmental serv- ices, such as carbon sequestration, and water and air filtration. Accordingly, the public is increasingly concerned that forests are managed to provide the full range of such services. In response to this pres- sure, the industry is beginning to focus on sustain- able forests rather than the traditional goal of sus- tained yield in which forests were managed to en- sure a continuous flow of timber products. Companies now recognize the importance of providing a sus- tainable flow of all benefits associated with forests.

Increasing internationalization magnifies the ef- fect of changing values on Canada's forest sector and hampers our ability to deal with some of the issues. Canadian environmental groups have elic- ited the support of international groups in their fight for sustainability of ecosystems. On other occasions, international environmental groups have led inde- pendent actions against Canada's forest industry. These activities have the potential to influence trade and market share.

In some international developments in the forest

industry it is difficult to separate "environmental" motivation from "market share" motivation. Are all the international pressures on Canada's forest in-

dustry a result of changing values or are some pres- sures attempts to restrict market access? The move towards certification of forest products, for exam-

ple, can be seen as a means of ensuring that forests are managed appropriately or as a non-tariff barrier.

Similarly, the line between environmental and mar- ket share motivation becomes blurred when compa- nies may lose market share if they are not environ-

mentally certified. In this special issue, Haener and Luckert examine the economic and welfare aspects of certification.

Another trend affecting Canada is the changing nature of international forest product markets. Cana- da's traditional competitive advantage has been ac- cess to cheap sources of raw fibre. This competitive advantage has been eroded by environmental activ- ism aimed specifically at stopping harvests of old-

growth forests, competition from plantation forests with short rotations in Asia and South America, and the development of new technologies that allow "lower quality" fibre to be used to make high qual- ity end products.

The challenge to policymakers in Canada is to remain flexible enough to respond to changes in

public values while ensuring that the forest prod- ucts sector remains competitive and able to respond to international pressure. In this special issue of Canadian Public Policy - Analyse de Politiques eight papers review a variety of topics related to the forest sector and provide some insight into some of the critical policy issues. Several of these papers focus on British Columbia because of the relative

importance of forestry in that province, and because several recent events in that province are useful case studies to explore some of the issues more thor-

oughly. In the following section we introduce some of the relevant policy issues and provide context to how the papers fit into a policy framework.

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S8 M.K. Luckert and F.J. Salkie

OVERVIEW OF THE SPECIAL ISSUE: EMERGING

POLICY ISSUES

In addition to the historic themes of employment and revenue, it is clear that two important new themes concern forest policymakers - changing values and the globalization of forestry, including internationalization of the forest industry. The eight papers in this volume deal with various aspects of these themes.

The first paper, by Delcourt and Wilson, is moti- vated by British Columbia's "jobs and timber ac-

cord," whereby the provincial government is hop- ing to increase employment in the sector, using its control over fibre to obtain industry support. Delcourt and Wilson examine forest job creation in other jurisdictions to determine the extent to which the BC forest sector might generate more employ- ment without actually harvesting more trees.

In the second paper, Globerman and his col-

leagues explore the impact of internationalization on Canadian forestry operations in a paper entitled

"Innovation, Strategy and Canada's Forest Products

Industry." The authors review global changes to the

industry and evaluate how Canadian industry has

responded to these changes with corporate level

strategies and innovation, and specifically R&D

performance in forestry. They find that Canada lags behind other countries in terms of innovation and

explore some of the reasons for this lag. They then discuss the position impact on the industry of alter- native strategies for promoting innovation.

Canada's primary trading partner is the United States and, due to transportation costs, we maintain a significant competitive advantage in accessing this

market. However, our relative dependence on the US as a market for Canadian wood products makes us vulnerable to US interference in domestic policy. In the third paper of this volume, entitled "The Role of Rent and Forest Policy in British Columbia's Stumpage System," Grafton, Lynch, and Nelson explore how US actions can affect Canadian policy.

The authors review the softwood lumber trade dis-

pute with the US and the BC rent and stumpage sys- tem in relation to this dispute. They suggest that the trade dispute arises more out of concern for market share than concern that Canadian producers are un-

fairly subsidized as traditionally espoused.

New paradigms of forest management are influ-

encing policy processes and practical level responses within incentive frameworks created by policies. Adamowicz and Veeman explore changing forest

management paradigms in response to changing values in the paper "Forestry and the Environment."

They discuss two possible approaches to incorpo- rating environmental concerns into forestry: a so- cial policy perspective based on more traditional

multiple-use management and a newer approach based on the natural-disturbance paradigm. They find that both approaches are difficult to implement and a combination may be required to optimally combine forest management for timber production with environmental concerns.

In response to changing values, the government may need to develop a variety of new regulations or

modify existing policy instruments. Two papers are

presented in this special issue that analyze current

policy approaches to managing forest resources in

response to changing values. In the first paper, "Es-

timating Economic Costs of Nature Protection: Brit- ish Columbia's Forest Regulations," van Kooten and

Wang estimate the costs and benefits of BC's For- est Practices Code. The Code was implemented in 1994 and provides rigorous guidelines for forest

management activities intended to protect biodiversity. However, the authors find that the costs to society of the Code likely outweigh its benefits.

Although this result supports recent government action to relax enforcement of the Code in recogni- tion of the high costs it imposes on the industry, the findings also suggest that current policy may not effectively deal with issues arising out of changing values. In the paper, "Planning for Sustainability of Forests in British Columbia Through Land Use Zon- ing," Sahajananthan, Haley, and Nelson examine an

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Forestry in Canada: Transitions and Emerging Policy Issues S9

alternative to increased forest regulation. They rec- ommend land-use zoning to set aside some forest areas for the primary purpose of timber production and others primarily for the production of non- timber values. This differs from the current case in BC in which most areas are managed for multiple uses. Using a case study, the authors show how much timber rents may increase by managing given areas for timber production, as opposed to multiple use.

They further suggest that this approach to land-use

zoning would facilitate necessary reforms to Crown forest tenures.

Canada's forest policies are increasingly having international consequences. Environmental groups from Europe have used various tactics, ranging from

boycotts and blockades, to influence forest manage- ment in Canada. In response to consumer demands for stricter environmental standards, a number of

systems are being developed that include forest cer- tification and ecosystem management. These pro- grams can inform consumers about forest manage- ment, thereby internalizing in the marketplace societal concerns regarding the environment. Haener and Luckert address this issue in a paper entitled "Forest Certification: Economic Issues and Welfare

Implications." They indicate that governments can use certification to control market access. A certifi- cation program that would be detrimental to Cana- dian forestry is one in which products are only cer- tifiable if they come from second growth forests. This effectively acts as a non-tariff barrier restrict-

ing Canada's entry into the market because much of Canada's timber originates with natural (original) forests. Furthermore, international bodies have re-

sponded to changing values of their constituents by developing global conventions on a variety of is- sues. These conventions have a direct effect on Ca- nadian domestic policy since, as a signatory to an

agreement, Canada commits to the established ob-

jectives through changes to domestic policy and practices.

Another example of an international priority af- fecting Canadian domestic policy is the issue of cli-

mate change. In the final paper in this volume, enti- tled "Climate Change and Forestry: What Policy for Canada?" Stennes, Krcmar-Nozic, and van Kooten examine the economic and policy aspects of climate

change as they relate to forestry in Canada. As a

signatory to the Framework Convention on Climate

Change in Rio de Janeiro in June 1992, and more

recently an accord in Kyoto, Japan, Canada has

agreed to significant reductions in CO2 emissions. This paper demonstrates that carbon sequestration strategies may be insufficient to meet these targets, and that other approaches will be required in addi- tion to changing forest policy to meet these targets.

In the end the topics of these papers represent only a small sampling of forest policy issues. Given the importance of Canada's forest inventories and of forestry to the domestic economy and the size of Canadian wood-product exports in the global mar-

ket, it is surprising that more attention has not been focused on the forestry sector. However, as the en- vironment becomes more important in the minds of the public, this could well change.

NOTES

The authors wish to thank C. van Kooten for extensive helpful comments on an earlier draft and the Sustainable Forest Management Network for funding support.

'Much of the background information in this section and ones that follow is based on Natural Resources Canada (1996). Statistics from other sources are indicated.

2Prince Edward Island and the Yukon and Northwest Territories are omitted from the following descriptions as their role in the forest products sector is quite small.

REFERENCES

British Columbia. Ministry of Forests (1992), An Inven- tory of Undeveloped Watersheds in British Columbia. Recreation Branch Technical Report 1992:2 (Victo- ria: Queen's Printer for British Columbia).

Canadian Council of Forest Ministers (1997), Compen- dium of Canadian Forestry Statistics 1996 (Ottawa: Supply and Services Canada).

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SI O M.K. Luckert and F.J. Salkie

Forestry Canada (1993), The State of Canada's Forests 1992 (Ottawa: Supply and Services Canada).

Haley, D. and M.K. Luckert (1990), Canadian Forest Ten- ures: A Framework for Policy Analysis. Information

Report E-X-43 (Ottawa: Forestry Canada). Luckert, M.K. and J.T. Bernard (1993), "What Is the Value

of Standing Timber? Difficulties in Merging Theory with Reality," Forestry Chronicle 69(6):680-85.

Moen, A.B. (1990), Demystifying Forestry Law: An Al- berta Analysis (Edmonton: Environmental Law Centre).

Natural Resources Canada (1996). The State of Canada's Forests: Sustaining Forests at Home and Abroad (Ot- tawa: Forestry Canada).

World Resources Institute (1994) World Resources 1994- 95: A Guide to the Global Environment (New York: Oxford University Press).

The Centre for Research on Economic and Social Policy, UBC announces recent discussion papers:

DP-36 Fertility, Literacy, and the Institution of Child Labour, by Mukesh Eswaran DP-37 Being Green in British Columbia: Public Attitudes towards Environmental Issues, by

Donald E. Blake, Neil Guppy, and Peter Urmetzer DP-38 The Economic Goals of Canada's Immigration Policy, Past and Present, by Alan G. Green

and David A. Green DP-39 Toward a Harmonized Payroll Tax for Australia, by Jonathan R. Kesselman DP-40 Job Durations in Canada: Is Long Term Employment Declining?, by David A. Green and

W. Craig Riddell DP-41 Economic Issues of General Payroll Taxes, by Jonathan R. Kesselman DP-42 The Effect of the Minimum Wage on the Distribution of Teenage Wages, by David A.

Green and Harry J. Paarsch DP-43 The Demand and Supply of Post-Secondary Education and Training in British Columbia,

by Robert C. Allen DP-44 Gross Flows of Labour in Canada and the United States, by Stephen R.G. Jones and W.

Craig Riddell DP-45 The Determinants of Municipal Tax Rates in British Columbia, by Craig Brett and Joris

Pinkse DP-46 Paying for Universities in British Columbia, by Robert C. Allen

Single copies are available upon request by writing: CRESP, c/o Department of Economics, University of British Columbia, Vancouver, B.C. V6T 1Z1 Papers 41-46 are available at: http://web.arts.ubc.ca/econ/cresppap.htm

CANADIAN PUBLIC POLICY - ANALYSE DE POLITIQUES, VOL. XXIV SUPPLEMENT/NUMtRO SPE'CIAL 2 1998

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