Efficiency and equity of forest policies: A graphic analysis using the partial equilibrium framework

The paper examines efficiency and equity implications of three types of forest policies –forest subsidies, forest certification, and command and control measures–, using some Spanish data. First, the three types of forest policies are analyzed for efficiency; the winners and the losers are identified and the net welfare for the society as a whole is examined. Next, the analysis is undertaken in income distributional terms; the distributional implications for the Spanish society are examined using a Lorenz curve. The results depend largely on the assumptions. In general, subsidies seem to provide greater welfare improvements than the other two policies, being command and control measures the most questionable. The income distribution analysis yields less clear results, although it shows the circumstances under which each policy would result in a more equal income distribution.