Regulatory action in EU alternative energy industry led to increased demand for timber
US Forest Service released a report noting that EU legislative regulation defying alternative energy use and energy sources with low carbon emissions led to increased demand for wood pellets.
Karen Abt, an economist and analyst at the Forest Service believes that it could lead to price growing for timber and export markets widening for US manufacturers. 'Wood from southern and northern parts of the country is used for wood pellets production that further being exported to EU', says Ms Abt, - 'Current and forecasted production levels have a potential of price growing however it can increase timber extraction'.
Specialists of the Department created the computer model of the market development at the south cost of the country up to 2040. 'Business as usual' scenario as well as scenario forecasting increased demand for timber as raw material for energy production were used. While calculating the alternative scenario specialists used constant growing demand for timber necessary for wood pellet production and other bioenergy solutions.
In 'business as usual' scenario the simulation indicated a short-term grow of the demand for timber along with sharp rise in prices however by 2040 these indexes would rapidly fall. While adding a bioenergy component into the forecast the results are extremely different. Experts consider that will increase the demand for timber unfit for building purposes.
A number of analytics share an opinion that increasing demand for timber will lead to rapid extinction of forests at in the south region of USA. However researching led by the US Forest Service proves the opposite. These results indicate that alternative energy needs have no influence for forests shortening pace. Ms Abt considers that it is connected to a necessity of support the demand as increasing prices for timber will make tree nurseries enlarge the forests territories and transplanting pace.
EU legislative acts were used as basic data including Renewable Energy Directive defined the share of alternative energy by 20 per cent from overall amount by 2020. However there is a chance that these rules will act for a much longer period that make more influence at the timber market.
