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Assessing the value of forestry to the Irish economy -- An input-output approach

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  • Ní Dhubháin, Áine
  • Fléchard, Marie-Christine
  • Moloney, Richard
  • O'Connor, Deirdre

Abstract

Input-output analysis was used to evaluate the total economic impact (i.e. the sum of the direct, indirect and induced impacts) of the forestry and wood products sectors on the Irish economy. The total impact of the forestry sector on a number of regional economies was also examined, as were the short-term economic consequences of an afforestation scenario. Only economic activity associated with timber production was considered, and externalities associated with the sector were not accounted for. The results show that in 2003, forestry produced a direct output of [euro]255.4Â million. For every euro of output from forestry, a further [euro]0.85 of economic activity was generated, yielding a total output of [euro]472.4Â million and total employment level of 7182. The wood products sector generated a total output of [euro]1.6Â billion and a total employment level of 12,246. These estimates of the economic impact of the forestry and wood products sectors cannot be added due to an overlap in indirect and induced impacts. The gross total value of an afforestation programme amounting to 15,000Â ha per annum over 5Â years was shown to be [euro]475.0Â million. Accounting for the fact that almost all land currently afforested is in agriculture, the net total value of this afforestation programme ranged from [euro]157.8Â million to [euro]340.4Â million, depending on the farming system being replaced and whether stacking of direct payments to farmers under the Single Payment Scheme applies to the land being planted.

Suggested Citation

  • Ní Dhubháin, Áine & Fléchard, Marie-Christine & Moloney, Richard & O'Connor, Deirdre, 2009. "Assessing the value of forestry to the Irish economy -- An input-output approach," Forest Policy and Economics, Elsevier, vol. 11(1), pages 50-55, January.
    • Handle: RePEc:eee:forpol:v:11:y:2009:i:1:p:50-55
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    References listed on IDEAS

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    1. A. T. Flegg & C. D. Webber, 2000. "Regional Size, Regional Specialization and the FLQ Formula," Regional Studies, Taylor & Francis Journals, vol. 34(6), pages 563-569.
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    1. Chang, Hung-Hao & Lee, Brian & Hsieh, Yi-Ting, 2021. "Participation in afforestation programs and the distribution of forest farm income," Forest Policy and Economics, Elsevier, vol. 129(C).
    2. Li, Yanshu & Mei, Bin & Linhares-Juvenal, Thaís, 2019. "The economic contribution of the world's forest sector," Forest Policy and Economics, Elsevier, vol. 100(C), pages 236-253.
    3. Bösch, Matthias & Elsasser, Peter & Rock, Joachim & Rüter, Sebastian & Weimar, Holger & Dieter, Matthias, 2017. "Costs and carbon sequestration potential of alternative forest management measures in Germany," Forest Policy and Economics, Elsevier, vol. 78(C), pages 88-97.
    4. Bösch, Matthias & Jochem, Dominik & Weimar, Holger & Dieter, Matthias, 2015. "Physical input-output accounting of the wood and paper flow in Germany," Resources, Conservation & Recycling, Elsevier, vol. 94(C), pages 99-109.
    5. McDonagh John & Farrell Maura & Mahon Marie & Ryan Mary, 2010. "New opportunities and cautionary steps? Farmers, forestry and rural development in Ireland," European Countryside, Sciendo, vol. 2(4), pages 236-251, January.

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