Benefits resulted from tariff removal of imported timber to Iran
2008
Menhaj, M. H., Member of Scientific Board of Guilan University
Iran has recently moved toward more trade liberalization in order to adapt its trade regulation by international ones. Removal of tariff from some imported goods (i.e. timber) is an example of such policies.In order to estimate the benefits from tariff removal of imported timber a two country trade liberalization model was adopted. Three potential effects were specified from the trade liberalization i.e., tariff removal on timber. Three potential effects are(1) the deadweight gain,(2) the labor displacement costs, and (3) the reduction in social costs associated with forest destruction.To estimate the monetary values of these effects the usual mathematical logics used in micro and labor economics was utilized. Some data were collected from Bureau of Census and some from libraries, local governments, as well as through questioner. Cost-Benefit analysis was used to estimate the social benefits and costs. The estimated social benefits and costs are 1018165milion Rials, and 326/015 milion Rials. The value for Benefit-Cost ratio was 2.12, which suggests removal of tariff from timber imported to Iran. Key words: Tariff, Timber imports, Social Benefits, Social Costs, and Environmental Tax
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