The forestry products value chain and the costs of reshaping it: Multi-regional impacts of shrinking the pulp and paper industries in Portugal

Abstract

Forestry industry macroeconomic assessments typically concentrate on the production, harvesting, and earliest processing of wood products, underestimating the full range of forests impacts in regional economies.
 This work proposes a broader concept – forestry products value chain – that ponders the contribution of the downstream activities relying (directly and indirectly) on Silviculture and Forestry products.
 The paper adopts a methodology based on a Multi-Regional Input-Output framework. We apply this approach to the Portuguese economy. Results clarify the role of eucalyptus in “Pulp”, “Paper and Cardboard” and “Paper and Cardboard Articles”. Finally, the projected wider macroeconomic consequences from a reduction of these productions is evaluated.