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Abstract
In the US South, private forestland owners own the majority of timberland, therefore, understanding timber supply from these owners is a fundamental forest economic question. This study estimates the timber supply equations and elasticities of private owners of TimberMart-South (TMS) Georgia region 2 (GA2). It uses individual owner stumpage sales data from 2010 to 2019 obtained from TMS and employs two-stage least regression (2SLS) for the analysis. Over the study period, sawtimber price has slightly decreased, while chip-N-saw (CNS) and pulpwood price exhibit the reverse trend. The regression results revealed that pine pulpwood stumpage volume was price inelastic (0.270), whereas pine sawtimber stumpage volume was almost unit price elastic (0.98). Furthermore, there was significant negative effect of sawtimber price on pulpwood volume supplied and vice-versa, however, the effect of the former was larger in magnitude. This unique study provides the empirical basis to make informed decisions for timber buyers.