Forestry's Economic Contribution in the United States, 2016

Abstract

AbstractEconomic contributions of an industry sector are often vital information in the policy-making process. IMPLAN data and software were used to determine the economic contribution of forest industries to all 50 states plus Washington, D.C. Rankings of the states' contributions to employment, employee compensation, and value added were determined. National forest inventory data, rural population, and industrial energy costs were examined for correlation with total forestry contributions to each state's economies. Rankings were based on absolute contributions as well as contributions as a percentage of a state's total economy. Percentage rankings present the relative importance of forestry to a state's economy, and can differ considerably from absolute value rankings. Regional and national contributions were also calculated to model interstate and regional contribution “leakages,” or trade effects. Differences in both interstate and interregional trade flows are substantial. Industrial energy costs, rural population, and timber removals were significantly correlated with total economic contributions.