Transcript stephanieclark2014.weebly.com

Economics of Forestry
Alan Plunket
Michael McGinniss
Douglas Dubrowski
Value of Forests to the Economy
> US Endowment for Forestry and Communities, Michael Goergen,
James Harding, Carlton Owen, Mark Rey, and Lynn Scarlett, May
29-30 2013
There is a $200 billion U.S. demand for wood and paper products.
> UN Forum on Forests April 8-19, 2013, Arun Agrawal, Ben
Cashore, Rebecca Hardin, Gill Shepherd, Catherine Benson,
Daniel Miller
Total contributions of the forest to the US economy are $250 billion
http://www.usendowment.org/images/Forest_Sector_Report_-_FINAL_9.5.13.pdf
http://www.un.org/esa/forests/pdf/session_documents/unff10/EcoC
ontrForests.pdf
Regulations’ Impact on the Timber Industry
US Endowment for Forestry and Communities, Michael Goergen, James Harding, Carlton
Owen, Mark Rey, and Lynn Scarlett, May 29-30 2013
●
Existing regulations impact the economic competitiveness of the U.S. manufacturing
sector. It currently costs 20 percent more to make a product in the U.S. than nine
major industrial countries including Germany, Japan, Canada, Mexico, and China. Much
of that additional non-labor cost is related to regulations.
●
The costs of major regulations increased at an average rate of 7.6 percent a year since
1998. In the past 30 years, more than 2,000 regulations were imposed on manufacturers,
with the Environmental Protection Agency (EPA) imposing the largest regulatory burden
($117 billion in constant 2010 dollars). The cumulative impact of major regulations
between 1993 and 2011 will lower overall manufacturing output by up to 6 percent
over the next decade.
●
Compounding these regulatory challenges are the various state-based regulations and
various inconsistent federal, state, and local tax policies.
Connection: Economic Contributions Make
it Hard to Establish Good Regulations
Because logging and paper products provide significant boosts to GDP, it is not
politically wise to impose regulations. This presents a choice to policymakers:
the economy or the environment. Politicians don’t want to be accused of kicking
people out of a job or slowing economic growth, so effective regulations are
avoided for fear of hurting business. This makes defending the forest very
difficult.
Management Improves the Timber Industry
>Bureau of Labor Statistics, May 2013
“In fact, forests under long-term management can be just as productive as
traditional agricultural ground, even when compared on a per acre, per year
basis. Managed forests typically have a species mix that favors higher valued
species such as oak, walnut, maple, ash, cherry, and poplar. Under proper
management, the quality of the timber improves, and the timber actually grows
faster. Well-planned management activities include selective, improvement
harvests and timber stand improvement (TSI).”
http://www.bls.gov/oes/current/oes191032.htm
Connection: Timber Quality
Effective management make the timber
industry have better quality products because
of the biodiversity that fosters the growth of
stronger tree species.
Manage public and private forested lands for economic, recreational, and conservation purposes. May inventory the type, amount, and location
of standing timber, appraise the timber's worth, negotiate the purchase, and draw up contracts for procurement. May determine how to conserve
wildlife habitats, creek beds, water quality, and soil stability, and how best to comply with environmental regulations. May devise plans for
planting and growing new trees, monitor trees for healthy growth, and determine optimal harvesting schedules.
over 9000 employed $60,000 wage
Ecotourism
>Cascade Lodge
Ecotourism is tourism directed toward exotic, often threatened, natural environments, especially to support conservation
efforts and observe wildlife.
http://www.cascadelodgemn.com/EcoTourism.php
>National Park Service
“Food, lodging, tours, whitewater rafting, boating, and many other recreational activities and amenities in more than 100
national parks are managed by private businesses under contract to the National Park Service. The services, provided
by more than 600 ‘concessioners,’ gross more than $1 billion every year and provide jobs for more than 25,000 people
during peak season.”
http://www.nps.gov/aboutus/doingbusinesswithus.htm
Ecotourism Continued-The
Principles
>ecotourism.org
● Minimize physical, social, behavioral, and psychological impacts.
● Provide direct financial benefits for conservation.
● Generate financial benefits for both local people and private industry.
● Design, construct and operate low-impact facilities.
Connection: Ecotourism Boosts
Economic Output
Having more activities in the
forest that generate revenue
for companies only increases
its cumulitive output and the
incenitve to protect it. If a
forest is very economically
important, consumers and the
government will never allow it
to be destroyed.
Source of Wealth
Forests are a major source of wealth for Canadians, providing a wide range of economic, social and environmental
benefits.
In 2013, the Canadian forest industry provided direct employment for 216,500 people in jobs that tend to be highly
skilled and well paid. Another 350,000 people are indirectly employed by the sector, in related jobs in areas such as
construction, engineering and transportation. Canada has the world’s largest forest product trade balance—C$19.3
billion
There are three main forest industry subsectors:
●
Solid wood product manufacturing – Firms in this area engage in both primary (such as softwood lumber and
structural panels) and secondary (such as millwork and engineered wood products) manufacturing for
domestic consumption and export. This subsector accounted for approximately 44% of the forest sector’s
contribution to the Canadian economy (as measured by real GDP) in 2013.
●
Pulp and paper product manufacturing – Companies in this area produce a wide range of products, covering
everything from newsprint and household tissues to dissolving pulp for rayon production. This subsector
accounted for approximately 36% of the contribution of the forest sector to the Canadian economy in 2013.
Green Economy
Green Economy- defined as an economy that results in reducing environmental risks and ecological scarcities,
and that aims for sustainable development without degrading the environment.
● Low Carbon
● Resource Efficient
● Socially Inclusive
What do they provide?
● Wood for the lumber industry
● Protection against erosion
● Watershed Protection
● Employment
Employment Statistics
1.
2.
Over 9000 people employed as Foresters
a. Forester- a person in charge of a forest or skilled in planting, managing, or caring for trees
Average wage of a forester- $59,900
Industry
Employment
Percent of Industry
Employment
Wood Preservation
630
.74
Logging
290
.58
Paper Mills
190
.18
State Government
3180
.14
Wood Engineering and Manufacturing
80
.12
https://www.cbd.int/financial/values/
g-valueforestpearce.pdf
“A comprehensive survey of sustainable
forestry practice...found [that] sustainable forest
management is less profitable than
nonsustainable forestry.”
Outlook
While it seems quality regulation that truly stops the destruction of forest may
never come in time, awareness has increased in recent years. If companies do
not try to sabotage the effectiveness of regulations and if regulators impose
sensible rules, the forest can be preserved. It is likely that, eventually, the
government, consumers, and corporations will take this path due to the
massive economic benefits to the US and other nations of preserving the
forest. Activists should encourage this as much as possible without becoming
too crazy with their demands, which could reduce supporters. Overall, the
future looks bright for the trees, bushes, and birds that share the forests with
countless other species and us humans.