Welfare effects of forestry best management practices in the United States
State forestry best management practice (BMP) programs have been widely developed and implemented to prevent nonpoint source water pollution in the past three decades. The unanswered question is how forestry BMPs have affected the welfare positions of consumers, mills, loggers, and forest landowners. A Muth-type equilibrium displacement model was constructed to examine welfare changes of these stakeholders. The model considered a two-stage vertical production system with variable proportion production technology and imperfect market structure.