1 / 6

Timber Auctions

Timber Auctions. Kurt Niquidet. Background/Research Motivation. 95% of forest land base in Canada owned by public. Timber harvesting rights granted to private companies through long term tenures. Charges for cutting timber administered via a pricing formula.

ezekiel-wiggins
Télécharger la présentation

Timber Auctions

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Timber Auctions Kurt Niquidet

  2. Background/Research Motivation • 95% of forest land base in Canada owned by public • Timber harvesting rights granted to private companies through long term tenures. Charges for cutting timber administered via a pricing formula • US claims this formula does not collect resource rents and subsidizes the Canadian timber industry. 27% CVD since 2001 – US$ 5 Billion thus far. • Resolution to dispute proposed by US DOC – Auction timber

  3. British Columbia Market Pricing System (MPS) • Auction 20% of timber (first price sealed bid auction) and use as a basis for pricing non-auctioned tenures • Hedonic Pricing Model – Known as transaction evidence appraisal • Potential competition issues. Timber is low valued/unit weight. Creates regional markets which are concentrated.

  4. Existing model Bid Equation • function of timber tract characteristics such as tree size, species, slope of site, Distance to nearest processing facility • Number of Bidders which is endogenous. In some cases no bidders (truncated model) Number of bidders equation • regional dummy variables, reserve price, bid preparation costs

  5. Future research and issues Improve the hedonic model • enrich the number of bidders entry decision. Need more spatial data. Location of timber relative to all potential bidders. • Get “no-bid data“ – Heckman model? • Panel Model? Uses • Set appropriate reservation prices • Map extensive and intensive margins

More Related