Assessing the impacts that market and policy changes in the forest industry have on communities in rural New Brunswick [Van A. Lantz and Yigezu A. Yigezu]

University of New Brunswick
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“A two-sector computable general equilibrium model is calibrated to the New Brunswick community of Petitcodiac. Simulations are conducted for marginal reductions in both the price of lumber and the timber supply. We observe that both reductions have negative impacts on output and most production factors in the forest sector. Other production sectors tend to expand as production factors flow to where they receive their highest return. Comparing the results of this study with those of an Alberta case study, findings indicate that the New Brunswick community is more significantly impacted from timber supply changes and is less significantly impacted from timber price changes.”