The Southern Research Station (SRS) study found that Europe's demand for US wood pellets has a positive effect on US forests and forest markets. It said that increased demand for wood pellets from the US South, driven primarily by the EU Renewable Energy Directive, will result in increased investments in forestland, which leads to greater forest cover over time. In addition, increased demand for wood residues and non-sawtimber feedstock from the wood pellet industry will lead to a greater increase in the number of pine and softwood trees in the US South than would have occurred otherwise.
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