Goychuk D. Economic mechanisms of raw timber supply

The research is on the theoretical, methodological and practical principles of the economic supply mechanismsof raw timber in Ukraine. The current status of Ukraine's timber resources and forest industry is analyzed, along with logging volumes, distribution channels and existing state policies. A set of recommendations are presented for regulating raw wood supply on domestic and foreign markets. It is demonstrated that forests of Ukraine are a limited, but extremely valuable resource, and that their timber values are secondary to the ecosystem services they provide. It is found that the consumption of timber resources must be made on the basis of sustainable forest management. The state government has an over-riding influence over raw wood supply, combining the functions of management and control of utilization, protection and restoration of forests and therefore heightened responsibility regarding overall resource use. A system of econometric models is developed to assess the impact of selected factors and policy instruments on wood supply, and to forecast alternative development scenarios. Methodical approaches are provided to adjusting annual forest tax rates considering time coefficient factors. The benefits of expedited full-scale transition from opentimber auctions on regional exchanges to a single electronic trading system is demonstrated.