Thus, we hypothesize that regional timber supply in China is a function of the price of timber (P), a dummy variable representing introduction of the NFPP in 1998 (NFPP), the logging quota allocated to the forest (L), the ratio of the area of state-owned forests to that of collectively owned forests (SC), forest inventory volume (I), average wage of forest workers (W), and ratio of average wage of forest workers to local average wage (R).
Some other exogenous variables, like forest inventory, average forestry wage, logging quota, and the NFPP dummy variable also consistently influence timber supply in China.
Our study confirms that China's forestry policy restricts China's timber supply in two major ways: one is the NFPP and the other is the logging quota system.
Some of the explanatory variables data in the econometric model--GDP, price index of metal industry, house area under construction, rural and urban income per capita per year, average social income, average social wage--are from Statistical 50 Years of New China (National Bureau of Statistics 2005); some explanatory variables data--dummy variable of NFPP, logging quota--are from official documents issued by State Forestry Administration; and other determinants data--average forestry wage, forests inventory--are from Statistical Yearbook of China's Forestry (State Forestry Administration).
Ten years after the commitment at ICPD, the NFPP
has still not been
China instituted the NFPP in late 1998 soon after devastating floods occurred along the Yangtze River in the south and the Songhua and Nen rivers in the northeast.
2004, within the Yangtze and Yellow river catchments, the objectives of the NFPP included
For Inner Mongolia and northeastern China, as well as for the northwestern provinces of China and Hainan, the objectives of the NFPP were
In the NFPP, which covers from 2000 to 2010, the tasks related to timber supply include: 1) fully discontinuing the commercial logging of natural forest along the upper reaches of the Yangtze River and the upper and middle reaches of the Yellow River, thereby reducing the timber output volume by 12.
During the implementation of the NFPP, in order to solve the problems incurred because of the cessation of commercial logging in the Program area and ensure successful implementation, the State Forestry Administration approved the execution of pilot project logging of commercial plantations within the NFPP area in Sichuan in 2001, in Hubei and seven other provinces in 2003, and in Hubei and eight other provinces in 2004, in all cases upon application to relevant provincial (autonomous region) governments.
In order to offset the negative impacts on the wood-producing sector as a result of the NFPP, the Chinese government developed plans in 2001 to encourage the use of wood substitutes (Fig.
Composition of the areas involved in the NFPP (NSBC 2001).