Christmas tree production occurs worldwide on Christmas tree farms, in artificial tree factories and from native stands of pine and fir trees. Christmas trees, pine and fir trees purposely grown for use as a Christmas tree, are grown on plantations in many western nations, including Australia, the United Kingdom and the United States. In Australia, the industry is relatively new, and nations such as the United States, Germany and Canada are among world leaders in annual production.
Great Britain consumes about 8 million trees annually, while in the United States between 35 and 40 million trees are sold during the Christmas season. Artificial Christmas trees are mostly produced in the Pearl River delta area of China. Christmas tree prices were described using a Hotelling-Faustmann model in 2001, the study showed that Christmas tree prices declined with age and demonstrated why more farmers do not price their trees by the foot. In 1993, economists made the first known demand elasticity estimates for the natural Christmas tree market.
Read more about Christmas Tree Production: Artificial Tree Production, Profitability, Economic Theory
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