Economic impacts of closing national forests for commercial timber production in Florida and Liberty County

The paper assesses the impacts of a proposed policy, which suggests a ban on commercial timber harvest in the US national forests. Specifically, this study examines the effect of this policy on a small forest dependent county (Liberty County) in Florida and Florida State by applying a computable general equilibrium (CGE) model. The results indicate that the proposed policy would decrease overall economic output by $5 million in Liberty County. The decrease in economic output at the state level in response to this policy is only $1 million. Results suggest that the welfare index in response to the proposed policy will drop by 2.9% in Liberty County while the change at the state level is negligible. At the county level, where limited alternate opportunities for labor and capital mobility, the negative effect of the proposed policy is shown to have a multiplying effect.