Expanding U.S. Log Export Restrictions: Impacts on State Revenue and Policy Implications

Recently, federal regulations restricting the export of softwood logs harvested from federal lands were extended to state-owned timber lands in the West. Using data on individual sales from state of Washington timber lands and a hedonic regression to control for quality differences and output market factors, we find that a partial ban on Washington log exports, in effect in 1991 and 1992, did not reduce Washington′s timber revenues. This finding suggests that the state of Washington has substantial power in the export market for high quality timber. Policy implications based on these findings are discussed.