Maximizing natural resource rent economics: The role of human capital development, financial sector development, and open-trade economies in driving technological innovation.

Technological innovation is considered one of the most significant production variables. The influence of natural resource rents on this factor is crucial to the success of nations' sustainability with abundant natural resources. Driven by a theoretical argument, this research investigates the impact of natural resource rents on technological innovation by engaging the "instrumental variable fixed-effect method." With "Driscoll-Kraay's robust standard errors," the research accounts for "cross-sectional dependency" in a panel of 79 economies from 1995 to 2021. The empirical results confirm that natural resource rents positively and significantly impact innovation measured with trademark and patent applications. The findings also indicate that the components of natural resource rents, such as oil and natural gas rents, significantly promote technological innovation. The findings also indicate the roles of human development, financial development, and trade economies in the impact of natural resource rents on technological innovation. Due to heterogeneity, the analysis categorizes countries based on their economic development into "developed," "transition," and "developing" economies. The article finishes with policy implications, arguing that natural resource rent support a more resource-efficient economy and move toward a more circular economy targeted for sustainability. Therefore, emerging markets that initiate natural resource rents can support human capital and financial services through financial sector development and trade in maximizing technological innovation.

Expected Timber-Based Economic Impacts of a Wood-Boring Beetle (Acanthotomicus Sp.) That Kills American Sweetgum.

American sweetgum trees (Liquidambar styraciflua L. [Altingiaceae]) in China are being killed by a newly discovered wood-boring beetle "sweetgum inscriber" (Acanthotomicus sp.). It has not been detected in the United States yet, but given the extent of trade with Asian countries, eventual arrival of this beetle is a serious concern. The American sweetgum is one of the main hardwood species in the southern United States, and provides several economic and ecological benefits to society. We present the first economic analysis of the potential damage from sweetgum inscriber (SI) to timber-based land values in the southern United States. We modeled economic impacts for a range of feasible SI arrival rates that reflect policy interventions: 1) no efforts to prevent arrival (scenario A, once every 14 and 25 yr), 2) partial prevention by complying with ISPM 15 standards (scenario B, once every 33 and 100 yr), and 3) total prevention of arrival (scenario C, zero transmission of SI). Our results indicated much lower land values for sweetgum plantations without the prevention on SI establishment (scenario A, US$1,843-US$4,383 ha-1) compared with partial prevention (scenario B, US$5,426-US$8,050 ha-1) and total eradication of SI (scenario C, US$9,825). Across the region, upper bound timber-based economic losses to plantation owners is US$151.9 million (US$4.6 million annually)-an estimate that can help inform policy decisions.

Pre-invasion economic assessment of invasive species prevention: A putative ambrosia beetle in Southeastern loblolly pine forests.

Invasive wood borers vectoring pathogenic fungi have nearly exterminated several North American tree species, and it is unclear whether landscape dominant trees, such as pines, will face similar threats in the future. This paper explores the economic impacts of a hypothetical arrival of a destructive ambrosia beetle "X" (Coleoptera: Curculionidae) that infests loblolly pine (Pinus taeda L.) forests in the Southeastern United States. We develop an economic framework for pre-invasion assessment that incorporates fluctuating economic and environmental conditions for a representative loblolly pine stand and biological assumptions from the ongoing laurel wilt epidemic. Assuming an initial annual probability of arrival of a pine infesting ambrosia beetle to be between 0.04 and 0.07, we determine that, on average, the timber economic benefits for a forest landowner are $5325.3 ha-1, with a harvest time of 17.8 years. Our results indicate that an increase in enforcement consistent with an international phytosanitary standard that partially prevents the arrival of ambrosia beetles (30% arrival reduction) would have a strong, positive impact for forest landowners. On average, economic revenues increase to $6116.4 ha-1 and the harvest age is extended to 19 years. On average, the economic losses for forest landowners with no control of ambrosia beetle X would be $791 ha-1, with a harvest time reduction of 1.2 years. The upper-bound regional cost savings from pine-dominated forestry would be roughly $4.6 billion dollars if invasion preventative measures are in place. These benefits vastly outweigh the cost of programs that reduce the expected arrival of exotic ambrosia beetles.

Climate Change and Ecosystem Services Output Efficiency in Southern Loblolly Pine Forests.

Forests provide myriad ecosystem services that are vital to humanity. With climate change, we expect to see significant changes to forests that will alter the supply of these critical services and affect human well-being. To better understand the impacts of climate change on forest-based ecosystem services, we applied a data envelopment analysis method to assess plot-level efficiency in the provision of ecosystem services in Florida natural loblolly pine (Pinus taeda L.) forests. Using field data for n = 16 loblolly pine forest plots, including inputs such as site index, tree density, age, precipitation, and temperatures for each forest plot, we assessed the relative plot-level production of three ecosystem services: timber, carbon sequestered, and species richness. The results suggested that loblolly pine forests in Florida were largely inefficient in the provision of these ecosystem services under current climatic conditions. Climate change had a small negative impact on the loblolly pine forests efficiency in the provision of ecosystem services. In this context, we discussed the reduction of tree density that may not improve ecosystem services production.

Sustainability of forest management under changing climatic conditions in the southern United States: adaptation strategies, economic rents and carbon sequestration.

The impacts of climate change on profitability and carbon storage in even-aged forest stands of two dominant commercial pine species, loblolly and slash pine, in the southern United States were assessed under alternative assumptions about the impact of climate change on forest productivity and catastrophic disturbance rates. Potential adaptation strategies to reduce losses from disturbance included: 1) alternative planting densities, and 2) planting slash pine instead of loblolly pine. In addition, the amount of sequestered carbon was used to develop an index of economic efficiency for carbon sequestration, which further helps rank the suitability of alternative adaptation strategies. Our results indicate that greater economic rents from forests occur with lower planting densities and the substitution of slash pine for high density loblolly pine. However, less carbon is sequestered by low density loblolly pine compared to slash pine and high density loblolly pine. Both adaptation strategies are economically more effective in terms of carbon sequestration compared to the baseline since they generate more economic revenues per Mg of sequestered carbon.

Assessing public preferences for forest biomass based energy in the southern United States.

This article investigated public preferences for forest biomass based liquid biofuels, particularly ethanol blends of 10% (E10) and 85% (E85). We conducted a choice experiment study in three southern states in the United States: Arkansas, Florida, and Virginia. Reducing atmospheric CO(2), decreasing risk of wildfires and pest outbreaks, and enhancing biodiversity were presented to respondents as attributes of using biofuels. Results indicated that individuals had a positive extra willingness to pay (WTP) for both ethanol blends. The extra WTP was greater for higher blends that offered larger environment benefits. The WTPs for E10 were $0.56 gallon(-1), $0.58 gallon(-1), and $0.48 gallon(-1), and for E85 they were $0.82 gallon(-1), $1.17 gallon(-1), and $1.06 gallon(-1) in Arkansas, Florida, and Virginia, respectively. Although differences in WTP for E10 were statistically insignificant among the three states, significant differences were found in the WTP for E85 between AR and FL and between AR and VA. Preferences for the environmental attributes appeared to be heterogeneous, as respondents' were willing to pay a premium for E10 in all three states to facilitate the reduction of CO(2) and the improvement of biodiversity but were not willing to pay more for E85 in order to enhance biodiversity.