This review analyzes the relationship between trade and environmental effects in forestry, suggesting future research directions for policy impact.
Despite an extensive conceptual literature on trade and environment, empirical work remains limited. Forest products and their distinguishing market characteristics have received little attention within this literature. The theories ofcomparative advantage and externalities link trade and environmental economics, providing a framework for analyzing the environmental effects of freer trade and the trade effects of environmental restrictions. The review assesses the state of the forest economics literature on these issues, suggesting empirical work to support more informed deliberation of trade and other forest sector policies.
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Tomberlin et al. (1998) studied this question.
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