Title:
The Forest Products Industry at an Energy/Climate Crossroads
The Forest Products Industry at an Energy/Climate Crossroads
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Brown, Marilyn A.
Baek, Youngsun
Baek, Youngsun
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Abstract
Transformational energy and climate policies are being debated worldwide that could have
significant impact upon the future of the forest products industry. Because woody biomass
can produce alternative transportation fuels, low-carbon electricity, and numerous other
“green” products in addition to traditional paper and lumber commodities, the future use of
forest resources is highly uncertain. Using the National Energy Modeling System (NEMS),
this paper assesses the future of the forest products industry under three possible U.S. policy
scenarios: (1) a national renewable electricity standard, (2) a national policy of carbon
constraints, and (3) incentives for industrial energy efficiency. In addition, we discuss how
these policy scenarios might interface with the recently strengthened U.S. renewable fuels
standards. The principal focus is on how forest products including residues might be utilized
under different policy scenarios, and what such market shifts might mean for electricity and
biomass prices, as well as energy consumption and carbon emissions. The results underscore
the value of incentivizing energy efficiency in a portfolio of energy and climate policies in
order to moderate electricity and biomass price escalation while strengthening energy
security and reducing CO2 emissions.
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Date Issued
2010-06
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Text
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Working Paper