Substitution of Public for Private Funding in Planting Southern Pine

Author： Lee Karen J. Kaiser H. Fred Alig Ralph J.

Publisher： Society of American Foresters

ISSN： 0148-4419

Source： Southern Journal of Applied Forestry, Vol.16, Iss.4, 1992-11, pp. : 204-208

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Abstract

Although public tree planting programs are designed to correct market failures, their only result may be a transfer of income if cost-shared planting is being substituted for private investment in tree planting. Previous research and anecdotal evidence suggests: (1) that nonindustrial owners use public cost-sharing funds even when they would have planted anyway, and (2) that forest industry and/or nonindustrial owners plant fewer acres because of large nonindustrial cost-sharing programs. We addressed these questions using an economic model and did not find conclusive evidence of substitution. Without substitution, increased inventories and hence increased timber supplies should result from the public tree planting programs. South. J. Appl. For. 16(4):204-208