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The potential rural development impacts of utilizing non-merchantable forest biomass

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  • Crandall, Mindy S.
  • Adams, Darius M.
  • Montgomery, Claire A.
  • Smith, David

Abstract

The development of a market for currently non-merchantable forest material, such as harvest residues or small diameter trees, has been suggested as a possible win-win solution that could: (i) provide a material that can be processed in rural communities reeling from changes in the forest products industry and policy environment; (ii) capture more value from timber management activities; and (iii) provide a financial incentive for treatments to reduce wildfire risk or restore forest stands. Modeling the supply of this material with spatially-explicit potential demand locations allows for a realistic analysis of the feasibility of such a market to stimulate rural development. We model multiple scenarios for the utilization of harvest residues within the current forest products market in western Oregon. Sensitivity analysis explored the effects of cost of the depots on feasibility, including policy designed to support depot establishment through subsidies. Scenarios were also used to assess the effects of increases in federal harvest activities. Results suggest that with relatively high biomass prices, there is some potential for investment in depots to aid rural communities in western Oregon, but there is little change in either the overall feasibility or the location of depot establishment under scenarios of increased federal harvest.

Suggested Citation

  • Crandall, Mindy S. & Adams, Darius M. & Montgomery, Claire A. & Smith, David, 2017. "The potential rural development impacts of utilizing non-merchantable forest biomass," Forest Policy and Economics, Elsevier, vol. 74(C), pages 20-29.
    • Handle: RePEc:eee:forpol:v:74:y:2017:i:c:p:20-29
    DOI: 10.1016/j.forpol.2016.11.002
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    References listed on IDEAS

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    1. Jenkins, Timothy L. & Sutherland, John W., 2014. "A cost model for forest-based biofuel production and its application to optimal facility size determination," Forest Policy and Economics, Elsevier, vol. 38(C), pages 32-39.
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    7. Barbour, R. James & Fried, Jeremy S. & Daugherty, Peter J. & Christensen, Glenn & Fight, Roger, 2008. "Potential biomass and logs from fire-hazard-reduction treatments in Southwest Oregon and Northern California," Forest Policy and Economics, Elsevier, vol. 10(6), pages 400-407, August.
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    Cited by:

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    2. Venn, Tyron J. & Dorries, Jack W. & McGavin, Robert L., 2021. "A mathematical model to support investment in veneer and LVL manufacturing in subtropical eastern Australia," Forest Policy and Economics, Elsevier, vol. 128(C).
    3. Adams, Darius M. & Latta, Gregory S. & Crandall, Mindy S. & Guerrero Ochoa, Isabel G., 2019. "The importance of incorporating intertemporal and spatial log market dynamics in projections of residue-based biomass supply for liquid biofuel production in western Oregon and Washington, USA," Forest Policy and Economics, Elsevier, vol. 106(C), pages 1-1.
    4. M. Jean Blair & Bruno Gagnon & Andrew Klain & Biljana Kulišić, 2021. "Contribution of Biomass Supply Chains for Bioenergy to Sustainable Development Goals," Land, MDPI, vol. 10(2), pages 1-28, February.

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