Prospects of Wood-Based Energy Alternatives in Revitalizing the Economy Impacted by Decline in the Pulp and Paper Industry

摘要

Recently, the US forest product industry has seen remarkable shifts in market demand for traditional forest products. The displacement of paper demand by new electronic media and communication technology has led to the closure of several pulp and paper-based manufacturing facilities across the nation. The closure of such facilities can have devastating impacts on forest communities in the mills' fiber shed area, particularly forest landowners, loggers, truckers, and others involved in the supply chain. Sustaining forest-dependent communities need viable economic alternatives. Development agencies at the local and regional levels need to fully understand the feasibility of new forest-based alternatives. With a case of 24 counties that made up the hardwood fiber shed for a recently closed pulp mill, this study analyzed the feasibility of three alternatives in revitalizing the affected economy through utilizing the surplus fiber and creating new opportunities for the displaced workforce. Although investment in each business alternative is likely to yield positive return on investment for the region, expected impacts on jobs and industrial output varied considerably. Compared with wood pellet and bioelectricity, the bio-oil industry is likely to generate jobs that will not only offset the current job deficit but also create additional opportunities. Results from a multiregional input-output analysis revealed spillover economic opportunities beyond the impacted areas. Findings will be useful in guiding sustainable business and investment decisions as well as understanding the anticipated community benefits of energy-based industries in revitalizing economies affected by the declining market demand for traditional forest products.