A spatial hedonic stumpage analysis of standing timber auctions in Jiangxi Province of China

To understand the local market structure of stumpage and analyze the effects of various determinants of stumpage on timber prices in Jiangxi province of China, this study develops, estimates and compares the results of global and local hedonic models of stumpage. The models are estimated using 628 transactions data of timber auctions organized by formal forest trade centres. Ordinary Least Square is used to estimate global models while semi-parametric geographically weighted regression (SGWR) for local models. The results suggest that the local (spatial) models are better fit; the influence of all (except three) determinants varies spatially, and many determinants influence stumpage positively in some locations while negatively in others. The results show that state-owned forests receive higher prices compared to private forests and neither format of auction (sealed-bid versus open) dominates in all areas. The results highlight the importance of the context in the analysis of stumpage markets. The spatial variation in the effects of determinants across diverse natural landscapes should be incorporated in the auction design and organization across geographical areas.