Regional woody biomass supply and economic impacts from harvesting in the southern U.S

Demand for woody biomass from the southern United States (US) is increasing because of its reliability in supply, recent developments in co-firing and biofuel conversion technologies, overseas pellet demand, and the expected economic impacts from reorienting the forestry sector towards energy feedstock production. This research examines the interaction between a set of woody biomass harvesting sources (logging residue, non-merchantable, and merchantable roundwood) and wood types (hardwood, planted softwood, and natural softwood), and the impacts harvest costs have on the extraction of these materials in the southern US. The expected woody biomass availability and its geographic distribution are determined with a cost minimizing linear programming model. The marginal cost of woody biomass supply is determined for different energy production targets, subject to satisfying conventional wood demand. Given derived industry supply curves, the economic impacts of the sector are analyzed using the IMpact analysis for PLANning model (IMPLAN) at the Bureau of Economic Analysis (BEA) level. The results suggest that forest biomass for energy production is projected to be available over a much wider price range with logging, residue, and non-merchantable and merchantable roundwood in these regions. Supply of hardwood and softwood biomass from merchantable roundwood is expected to increase if these materials can be harvested for non-conventional uses. Development of harvesting woody biomass from logging residue, non-merchantable, and merchantable timber has positive effects on local economies, bringing with it employment opportunities to some BEA regions. •Estimated forest woody biomass availability and geographical distribution in the Southern U.S.•Sector level economic impacts are analyzed at the BEA level using IMPLAN modeling.•Results indicate forest biomass from logging residues and whole trees are available over a wide price range.•Harvesting woody biomass as an energy feedstock has positive but regionally varying effects on the economy.