ASSESSING THE BUSINESS ENVIRONMENT FOR THE FOREST PRODUCTS INDUSTRY IN THE NORTHEAST

Recent research identified business environment as a critical issue impacting the forest products industry. The stringency of regulatory policies in New York, Pennsylvania, Vermont and Maine was examined, and differences in how these policies were perceived by loggers and sawmillers in these states were measured. A conceptual model of business environment was developed that defined it as a function of land use policy, property taxes, transportation regulations, workers' competition costs, and energy costs. Two methods were used to measure business environment based on this conceptual model. Results indicated that primary forest products firms in New York face a more stringent business climate than industries in other states.