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American Timber: In-Depth Approach Toward Wood Derivative Markets and Deforestation Legislation

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Deforestation is one of the many concerns of modern day economists when it comes to the world's developing countries. Wood counts as one of the primary resources available for construction and renewable energies. Today, we speculate the damage to forests through over-exploitation typically leads to the loss of long-term income. Economic growth and deforestation have a relationship in which follows a neoclassical growth model of maximizing potential output, eventually halting at a steady state. This generalizes over the short-term economic gains by utilizing the timber and land to an advantageous endogenous growth theory. Colonial America's reliance on wood can be traced to township commercial buildings in which the primary structure…show more content…
With the lack of resources available in one’s native country, the prices for wood increased as early as the end of the 15th century. It is important to realize the market potential for the American colonies’ large abundance in such resources, because estimates on the American export of products might as well have been the rib on the backbone of the economic growth in early phases of American independence and infrastructure. The industry grew and influenced toward the colonies in Massachusetts where recommendations were given for further shipbuilding from the Navigation Acts, which included provisions favorable to the industry. With prices increasing and with a steady demand of output of merchant ships, Great Britain looked toward business with Prussia, Sweden, Finland, Estonia, Livonia, and northern Germany, to obtain high quality tar and access to their important naval stores. During this time in the early 17th century, the production of naval store supplies were often an inefficient and slow process. Eventually Sweden became a clear partner in the naval stores business trade with England by providing products at reasonable prices. This distracted England enough to overlook their own Navigation Acts of 1660 because of an enumerative clause which excluded forest products.
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