TASMANIAN FORESTRY INDUSTRY STATE ANALYSIS.
EXECUTIVE SUMMARY
Tasmania is Australia’s most forested state, where it has one of the highest forest proportions on Earth. The Forestry industry in Tasmania is one of the most important economic resources for the Australian state, this industry is facing market problems because of the invasion of the low price imported timber products.
To support the timber industry, the government has to take corrective actions like imposing tariffs on imported non-Tasmanian timber, or to offer subsidies for the local timber producers to support the domestic timber industry in front of the imported products.
This report studies the effects of imposing tariffs or offering subsidies to the producers, showing the short and long term effects on the market and anticipates the different market responses to the impact of these decisions with various characteristics of supply and demand curves.
Then the report focus the market trend of the timber in Tasmania by studying the timber price variation along the period of thirty years from the 1982 to 2012, then checks the probability of seasonal effects on timber price variation.
Finally the report throws the light on the future of timber industry in Tasmania
TABLE OF CONTENTS
1 Introduction (Background) ………..………………………………….………… 4
1.1- The current state of the Tasmanian forestry industry…………………. 4
1.2- Global forestry industry ….………………….…………………………. 5
2 Government Policy.............………..………………………………….………… 6
a- Tariffs …………………………………...………………………………….. 6
b- i- The impact of imposing tariffs on non-Tasmanian timber products using conventional demand and supply diagrams ………………….
6
ii- Tariffs impact variation due to different demand and supply characteristics……………………………………………………….
8
iii- iii- Analysis of imposing tariffs on non-Tasmanian timber products….. 11
b- Subsidies …………………………...…...………………………………….. 12
i- The...