Assessing the impact of planted forests on the global forest economy

Abstract

Background: Planted forests are increasingly important in world forestry, natural resources conservation, and climate change policies. There is great interest in their potential for carbon sequestration and conservation of natural forests while they remain an essential source of fuelwood and industrial roundwood. Methods: A method was developed for estimating the importance of planted forests in the global forestry sector. This was based on calculation of a global economic equilibrium with or without planted forests, using an adaptation of the Global Forest Products Model (GFPM) to simulate wood production in seven regions representing a total of 180 countries. The GFPM was then used to calculate production, consumption, trading balance, and price of forest products in 2009. Results: The utilisation of planted forests was estimated to reduce prices of forest products by 24 - 37%, and those of manufactured products by 4 - 14%, depending on the level of processing. World production of fuelwood was 4% greater due to the utilisation of planted forests, and industrial roundwood production was 14% higher. Conclusions: Although an increase in the level of consumption of end products was noted for all regions, production was sometimes lower if the effect of reduced prices was greater than the effect of the increase in wood supply. Nevertheless, the gain in global financial benefit to consumers far exceeded the loss of producer profits, leading to an estimated net gain of US$10,000 ha-1 in net present value at 2009 prices. Furthermore, planted forests reduced roundwood harvesting from natural forests by 26%, thereby contributing to ecological benefits such as carbon sequestration and biodiversity conservation.