A Computable General Equilibrium Model for Environmental Policy Analysis: The Case of Deforestation in the Philippines
The deterioration of forest resources and poor economic performance in the Philippines calls for a serious rethinking in economic policies addressing both environmental and economic objectives. In order to protect the Philippine forests, the government implemented the Master Plan for Forestry Development covering a 25-year period (i.e. 1991-2015). However, after 16 years of implementation, the Philippine forestry industry has experienced a further reduction in production and in areas devoted to old-growth forests. The annual allowable cut remains excessive as it was prior to 1990. This proves to be an important forestry policy instrument as the findings in this book suggest that the volume of timber or the rate of deforestation is directly affected by the annual allowable cut rather than by population growth and poverty.
Stenberg, L. C., & Siriwardana, M. (2009). A computable general equilibrium model for environmental policy analysis: The case of deforestation in the Philippines. New York, NY: NOVA Science Publishers Inc.