How have subsidies contributed to non-sustainable forestry in US and Canada?

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter14: Environmental Economics
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How have subsidies contributed to non-sustainable forestry in US and Canada?

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The subsidies contribute to non-sustainable forestry in the US and Canada due to the direct link of subsidies and harmful effects on the environment. The subsidies cause an increase in the production of both inputs and output, and this production has a harmful effect on the environment. The subsidies provide price support to businesses which encourage more production. The subsidies which foster deforestation cause a decrease in the forest area.

 

 

 

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