B. Sohngen et R. Mendelsohn, VALUING THE IMPACT OF LARGE-SCALE ECOLOGICAL CHANGE IN A MARKET - THEEFFECT OF CLIMATE-CHANGE ON US TIMBER, The American economic review, 88(4), 1998, pp. 686-710
This paper establishes a methodology for valuing the impact of large-s
cale ecological changes in a market. Given the large capital stocks in
herent in most ecological systems, the dynamic nature of most ecologic
al change, and the dynamic response of markets, it is critical to buil
d dynamic models to capture the resulting effects. This paper demonstr
ates how to construct such a model using the impacts of climate change
on U.S. timber markets as an example. Across a wide range of scenario
s and models, warming is predicted to expand timber supplies and thus
benefit U.S. timber markets.