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- Title
Alabama Forest Products and the Potential Impacts of FTAA Price Changes.
- Authors
Malki, Mostafa; Thompson, Henry; Yeboah, Osei-Agyeman
- Abstract
The Free Trade Area of the Americas FTAA will increase import competition for some forest product industries in Alabama, create export opportunities for others, and alter pollution levels associated with the changes in forest products. Forest products loom large in the Alabama economy, both in terms of income and pollution. This paper makes the point that environmental policy should be considered along with trade policy in the FTAA. The present paper gauges the potential impacts of a range of price changes for forest products in an applied specific factors model of production. The potential impacts on outputs, capital returns, and pollution in Alabama are substantial. Anticipated price changes also raise the wage and lower energy demand. The motto of the State is "Keep Alabama Beautiful" and the pending forest product changes in FTAA will require continued effort at environmental policy to do so.
- Subjects
ALABAMA; FOREST products; PRICE level changes; FREE Trade Area of the Americas (Organization); INTERNATIONAL trade; POLLUTION; ENVIRONMENTAL policy
- Publication
Journal of Economic Integration, 2010, Vol 25, Issue 1, p129
- ISSN
1225-651X
- Publication type
Article
- DOI
10.11130/jei.2010.25.1.130