Mike N. Patriquin

Income derived from nonemployment sources (i.e., investment income and government transfers) is of increasing importance in rural areas. Knowing the extent and characteristics of a community's nonemployment income dependence can guide regional economic development and diversification strategies. This article explores nonemployment income dependence in Canada and compares social and economic characteristics of these communities to communities dependent on natural resources. Our findings suggest that the number of highly nonemployment income-dependent communities in rural Canada is relatively large, ranking second only to the number of highly agriculture-dependent communities. The prevalence of nonemployment income dependence in Canada varies by region, and social and economic characteristics in nonemployment income-dependent places are mixed. Nevertheless, a goal to attract private pension- and investment income-dependent households may be a sound economic diversification strategy for single-resource-dependent communities.

The well-being of people living in forest-dependent communities has been studied extensively, but little research has explored how this relationship has changed over time. Some theories suggest that regional differences in well-being should decrease, through the flow of capital and labour, while other work suggests that these inequalities will grow. Our research uses Census of Canada data at the census subdivision level at 5-year intervals between 1986 and 2001 to describe regional differentiation in the relationship between employment in forest sectors (logging, services, pulp and lumber) and unemployment and median family income as indicators of well-being. We found general declines, which varied somewhat by region, over time in forest dependence across the regions and changing composition of the forest industry across these sectors. The relationship between forest dependence and well-being over time varied by region, largely tied to intra-industry sector shifts.

This study investigates the regional economic impacts resulting from the current mountain pine beetle infestation in British Columbia, Canada, and proposes a mitigation strategy to reduce the negative impacts. The strategy consists of reducing the abrupt timber supply changes in an infested region through a reciprocal wood flow arrangement with an adjacent region less affected by the beetle. Two study areas facing different levels of beetle pressure are investigated: the Quesnel Timber Supply Area (high beetle pressure) and the combined Williams Lake/100 Mile House Timber Supply Area (low beetle pressure). A computable general equilibrium model is constructed for each region and is used to simulate the sensitivity of a suite of economic indicators to various timber supply scenarios for both regions. The results indicate that the negative economic impacts attributed to beetle damage could be reduced under a reciprocal wood flow agreement between the two regions. The degree to which the impacts are reduced in each region depends largely on assumptions about forest regeneration and growth and the terms of the reciprocal wood flow agreement.

The boreal forest region contains nearly 20 per cent of the world's forest resources. Canada contains ∼30 per cent of the world's boreal forest and the future of Canada's boreal region has been the subject of spirited debate, with some advocating more extensive and intensive harvest, while others argue for increased protection. Since the boreal region lags behind Canada as a whole on most indicators of socio-economic status, arguments for expanded harvest and for increased protection invoke the need to sustain human communities. To provide context for these discussions, we use Census of Canada data to examine the relationship between forest dependence and socio-economic status in the boreal region, and whether this relationship has changed over time. Controlling for other forms of economic development and place-specific characteristics, we find mixed results of forest dependence on socio-economic status. The forest industry plays a relatively small role in direct employment and labour income. Forest dependence is associated with increased income (especially in the lumber and pulp sectors), but relatively unstable employment. Examining the trend data, the forest industry appeared to have the greatest positive impact on socio-economic status in 1996, with a subsequent decline in 2001. Results signal a need for multi-faceted policy development associated with intensive management zones for industrial expansion and additional protected areas to support, in part, the maintenance of traditional activities such as trapping and fishing.