Effect of Bioenergy Demands and Supply Response on Markets, Carbon, and Land Use

An increase in the demand for wood for energy, including liquid fuels, bioelectricity, and pellets, has the potential to affect traditional wood users, forestland uses, management intensities, and, ultimately, carbon sequestration. Recent studies have shown that increases in bioenergy harvests could lead to displacement of traditional wood-using industries in the short run and intensive management, land use change, and sawtimber market impacts in the long-run. We simulate timber markets, as well as land use response and carbon outcomes resulting from projections of both traditional and bioenergy wood use in Alabama, Georgia, and Florida under differing levels of market supply responses. Increased logging residue recovery had a moderating effect on prices, although increased planting response led to higher carbon sequestration, and smaller effects on prices. Increased forest productivity led to lower prices, but also led to reduced timberland and thus lower forest carbon sequestration. Supply responses will be crucial to moderating market responses to increases in bioenergy wood demands. FOR. SCI. 58(5):523-539.