US Forest Sector Research Articles

Efficiency analysis and CO2 emission reduction strategies in the US forest sector: a data envelopment analysis approach

Industrial economic activities produce pollutants and environmentally sustainable production systems in forestry aim to minimize these undesirable outputs while maintaining high production and economic growth. In this contribution, we assume that in addition to plot-specific inputs and outputs, there are some contextual variables that may be exogenously fixed or may be under the control of the decision-makers. In this sense, we first propose a novel and practical approach to calculate environmental efficiency by reducing undesirable products. Then, we utilize an inverse data envelopment analysis (IDEA) model to effectively manage and reduce CO2 emissions. In doing so, the applied models have been utilized to evaluate the efficiencies of 89 forest plots in the USA. Given our estimations in a real application to the forest plots, the study revealed that the average environmental efficiency score is nearly 0.75 (out of 1). However, there is potential for improvement by adjusting the impacts of contextual factors, which could raise the score to approximately 0.8. Furthermore, the analysis indicates a positive correlation between ownership and environmental efficiency, suggesting that increased ownership leads to higher environmental efficiency. Conversely, temperature exhibits a negative correlation with environmental efficiency. Finally, the results obtained from the IDEA indicate that in order to reduce undesirable outputs by a specific level of 5–10%, it is necessary to decrease other inputs and outputs. This is because, under the assumption of weak disposability, reducing the level of undesirable outputs requires a reduction in certain factors that influence production capacity. In other words, achieving the desired reduction in undesirable outputs inevitably involves diminishing certain aspects of the production process. As the major conclusion, the emergence of IDEA as a powerful tool for sensitivity analysis, along with its flexible nature, offers exciting opportunities for research and practical applications in various fields, including forestry activities. It has the potential to enhance overall environmental efficiency and enable better control over GHG emissions levels.

Collaborating for a Thriving Maine Forest Sector

The authors of this commentary describe a coming together of an EPSCoR planning team with community leaders across the northeastern US forest sector. The community leaders came in support of this high-stake NSF proposal and in support of each other. As a result, their transdisciplinary deliberations on data and artificial intelligence (AI), economics, inclusion, and learning not only generated inputs to the recently announced $7 million NSF EPSCoR E-RISE award (OIA-2416915), but also gave them new language to describe their collaboration capacity.

A Land Use and Resource Allocation (LURA) modeling system for projecting localized forest CO2 effects of alternative macroeconomic futures

The United States has recently set ambitious national goals for greenhouse gas (GHG) reductions over the coming decades. A portion of these reductions are based on expected sequestration and storage contributions from land use, land use change, and forestry (LULUCF). Significant uncertainty exists in future forest markets and thus the potential LULUCF contribution to US GHG reduction goals. This study seeks to inform the discussion by modeling US forest GHG accounts per different simulated demand scenarios across a grid of over 130,000 USDA Forest Service Forest Inventory and Analysis (FIA) forestland plots over the conterminous United States. This spatially disaggregated future supply is based on empirical yield functions for log volume, biomass and carbon. Demand data is based on a spatial database of over 2300 forest product manufacturing facilities representing 11 intermediate and 13 final solid and pulpwood products. Transportation costs are derived from fuel prices and the locations of FIA plot from which a log is harvested and mill or port destination. Trade between mills in intermediate products such as sawmill residues or planer shavings is also captured within the model formulation. The resulting partial spatial equilibrium model of the US forest sector is solved annually for the period 2015–2035 with demand shifted by energy prices and macroeconomic indicators from the US EIA's Annual Energy Outlook for a Reference, Low Economic Growth, and High Economic Growth case. For each macroeconomic scenario simulated, figures showing historic and scenario-specific live tree carnon emissions and sequestration are generated. Maps of the spatial allocation of both forest harvesting and related carbon fluxes are presented at the National level and detail is given for both regions and ownerships.

Corporate responsibility development paths in the US forest sector

Corporate responsibility development paths in the US forest sector

Firm performance, business environment, and outlook for social and environmental responsibility during the economic downturn: findings and implications from the forest sector

The recent economic downturn severely affected the US forest sector from a macroeconomic perspective but little is known about changes in firm-level performance. In this study we investigate the changes in financial, social and environmental performance of forest sector firms during a period that approximately corresponds to the downturn. We also assess industry dynamism and industry’s view about social and environmental responsibility as a competitive tool. We conducted a national survey of wood, furniture, and paper companies. Approximately 60% of our respondents reported a decline in financial performance during the downturn. With respect to social and environmental performance, customer-oriented actions show mixed trends, employee matters remained somewhat unaltered, community engagement significantly decreased, and engagement in environmental activities significantly increased. Respondents view their operating business environment as highly dynamic and difficult and they do not view engagement in social and environmental responsibility activities leading to either financial or nonfinancial benefits.

Work climate, innovativeness, and firm performance in the US forest sector: in search of a conceptual framework

Innovativeness can help companies differentiate themselves, with the ultimate goal of securing survival and improving performance. Modern theories in organizational behavior look at innovation as something that starts with individual creativity but that is also affected by the work environment. Using one broad industry sector, the US forest products industry, this study attempts to integrate into a unifying model the concepts of work climate, innovativeness, and firm performance using structural equation modeling. Results support the proposed theoretical model, with some modifications, finding a positive and significant relationship among all factors. Having innovation as a core part of a company’s strategy and fostering a climate for innovation positively affects the degree of innovativeness and performance of a company. This is especially true for secondary or value-added wood products manufacturers. A climate for innovation is characterized by high levels of autonomy and encouragement, team cohesion, openness to change and risk taking, and sufficient resources available to people. Lack of a validation sample suggests treating the model as tentative until further testing.

Effects of global climate change on the US forest sector: response functions derived from a dynamic resource and market simulator

A multiperiod, regional, mathematical programming economic model is used to evaluate the potential economic impacts of global climatic change on the US forest sector. A wide range of scenarios for the biological response of forests to climate change are developed, ranging from small to large changes in forest growth rates. These scenarios are simulated in the economic forest sector model and results are summarized in response functions that may be used instead of rerunning the model as improved or altered biological response scenarios arise. The response functions are used to characterize broad impacts of climate change on the sector. We find that aggregate impacts (across all consumers and producers in the sector) are relatively small but that producers income and future welfare 30 to 40 yr in the future are most at risk. The forest sector is found to have adjustment mechanisms that mitigate climate change impacts, including interregional migration of production, substitution in consumption, and altered stand management.