A COMPARISON OF ECONOMIC-IMPACT ASSESSMENT METHODS - THE CASE OF FORESTRY DEVELOPMENTS IN ALBERTA

Economic impacts of forestry developments in Alberta are estimated usi ng two interindustry approaches. The results suggest that estimates de rived from input-output (I-O) models differ from those of computable g eneral equilibrium (CGE) models. Employment and GDP estimates derived from CGE models are much smaller than those of I-O models. Unlike I-O estimates, estimates derived from CGE models are not unidirectional be cause of general equilibrium effects. The results also indicate that C GE models provide greater flexibility and have more potential for fore st policy analysis when compared with I-O models, but they should be u sed with caution.