National Impacts of Softwood Product Price Increases

Abstract

Abstract Under prices projected for the period 1990-2030. U.S. consumption of softwood lumber would average 9 billion board feet per year less than if prices were stabilized at 1977 levels (in constant dollars). Softwood plywood consumption would average 5.5 billion square feet less per year and annual U.S. softwood sawlog consumption some 2 billion cubic feet less. Annual employment in softwood lumber and plywood manufacturing would be lower by 70 thousand man-years (33 percent) and payrolls by $400 million per year on the average. Losses to consumers due to rising prices would average $5 billion (constant 1967 dollars) per year over the 1990-2030 period, and the loss in residential construction activity is estimated to be 86 thousand units (4 percent) per year. If relative prices rise, displacement of wood products by nonrenewable substitutes such as concrete and steel will increase energy needs and create more pollution in the course of their manufacture.