Do certified tropical logs fetch a market premium? A comparative price analysis from Sabah, Malaysia

Walter Kollert and Peter Lagan (2007) Do certified tropical logs fetch a market premium? A comparative price analysis from Sabah, Malaysia. In: 22nd IUFRO World Forestry Congress, 8-13 August 2005, Brisbane, Australia.

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The controversy about the benefits of certification to timber producers has centered on the "market premium" and "market access" arguments. Some studies claim evidence that consumers are willing to pay a market premium between 2% and 30% for sustainably produced, certified timber products. Others doubt or flatly deny this notion. Most of these studies are based on willingness-to-pay surveys of consumer demand leaving aside the crucial question whether or not the producers of certified logs, which bear the costs of forest certification, obtain a financial reward for their efforts. The paper contributes quantitative evidence to the on-going debate. Time series of prices of certified and uncertified logs (2000 to 2004) provided by three forest management units from Sabah, Malaysia, were examined in a comparative analysis (ANOVA) of 6 species groups. The results suggest that forest management certification achieves a market premium for certified logs. In particular high quality hardwoods (e.g. Selangan Baru, Keruing) destined for the export market fetch a price premium of 27% to 56%. Lower quality timbers (e.g. Kapur, Seraya) also fetch a price premium, however the difference is less pronounced (2% to 30%). (C) 2006 Elsevier B.V. All rights reserved.

Item Type: Conference or Workshop Item (UNSPECIFIED)
Uncontrolled Keywords: Forest, Certification, Log prices, Sustainable forest management
Subjects: ?? SD430-(559) ??
Divisions: SCHOOL > School of International Tropical Forestry
Depositing User: ADMIN ADMIN
Date Deposited: 21 Sep 2011 06:36
Last Modified: 30 Dec 2014 07:00

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