Roger Sedjo
Senior Fellow, Resources for the Future
Introduction
Today there are a number of important demands on the world's forests that are undergoing changes. On the one hand the world's forests continue to be the source of timber and industrial wood used for building materials and paper products. On the other hand the world's forests are increasingly looked at as a source of a variety of recreational, environmental and ecological services. Increasingly the provision of timber is being viewed as in conflict with the provision of one or more of these other services.
A number of recent changes are occurring that have implications for the world's forests. While part of the world, the tropics, is continuing to experience deforestation, net reforestation is occurring in the temperate zone of the world. The deforestation of the tropics is driven primarily by land use conversion for other purposes, primarily agriculture. The reforestation of the world also is driven by changes in the agriculture sector, but in this case the abandonment of agricultural crop and pasture lands in temperate regions.
A second important change relates to the nature of the way society provides for wood supply. Today we see the continuation of the gradual transition of wood production from a foraging operation, where the bounty provided by natural forests is collected, to a cropping operation akin to agriculture. Food production experienced most of its transition from hunting and gathering to livestock raising and cropping many centuries ago. For forestry, however, most of this transition began in the 20th century and the transition is far from complete. However, the process has been accelerating and trees are increasingly being planted, cared for and harvested in a cropping mode. The benefit of direct tree planting, as in agriculture, is to provide an approach that leads to increases in yields and productivity, and the effect of which is to substitute a supply of wood from intensively managed plantations for wood that had traditionally been obtained from natural forests through an extensively managed process. Planted forests also provide an opportunity for embodying technology in the planted forest. Superior trees are being developed through traditional breeding techniques and, perhaps in the future, through biotechnological innovations. As in agriculture, planting allows the selection of seed stock and provides the opportunity to capture the financial benefits of investments in improved germ plasm. Hence, the transition to planted forests is accelerated by the opportunities that plantations provide for the application of modern technology. High productivity from planted forests opens the promise of relieving logging pressures on natural forests and thereby allowing many of them to be used for other, nontimber, purposes.
However, although the specialization inherent in this approach suggests that less forest land will ultimately be required to meet society's timber needs, some areas with particularly favorable tree growing conditions may expect to further increase their specialization in timber production. Thus, just as Iowa tends to specialize in the production of corn, other regions may be expected to specialize in wood production from planted forests. This appears to be happening currently in the U.S. south.
Additionally, there are important changes occurring on the demand side for industrial wood. Even as planted forests have been replacing natural forests, very recent decades have seen the relative stabilization of global demand for industrial wood. This stabilization reflects a relative decline in the importance of the marketed commodities of the forest and particularly industrial wood as a material. Whether this trend is temporary or permanent remains to be seen. However, there are a number of factors that suggest the stabilized demand could well be a permanent feature.
Even as demand growth is ebbing, the forests are increasingly being looked at as a source of noncommodity values including recreation, environmental and ecological services, carbon sequestration and biodiversity. Until recent decades, there was little serious concern about the losses of overall biodiversity or the function of forests as a storehouse of carbon, which decreases the amount of the carbon dioxide greenhouse gas in the atmosphere. However, this perspective has changed dramatically over the past decade or two and programs are increasingly being designed to protect biodiversity and/or promote forest carbon sequestration.
Furthermore, it should be noted that all of these changes are occurring in the context of a global population that, while it is becoming progressively richer, may also be well on its way to stabilization, or even decline. A globe with a stable and perhaps largely wealthy population is likely to place different demands on its forests than was experienced in the 20th century.
This paper examines separately the questions of commodity demand and industrial production within the context of a global society that is changing in values, production potential and population. The focus is on the pressures of the market demand for industrial wood because to the extent that these pressures abate over the next several decades, this will ease the ability of humans to redirect those forests into the production of nontimber outputs. Also examined is the question of supply and the history of and recent trends in the production of industrial wood with some speculation as to the future implications of existing or likely soon-to-be developed technologies. Finally, the paper tries to synthesize these factors into a coherent overview of one possibility for the future of the world's forest.
Changing Consumption of Industrial Wood
Human demands and perception of the world's forests have changed dramatically in the past several decades. Traditionally, forests were viewed as a source of timber and game, with recognition also of some other values, e.g., watershed values. More recently the emphasis has been on forests as a source of industrial wood for economic and industrial development. This view can be ascribed to the creators, one hundred years ago, of the National Forest System of the U.S. where the National Forest System was created to provide water and a continuous supply of timber. Today, the forests are increasingly being viewed as a source of various nontimber outputs including biodiversity, environmental and ecosystem services.
Changes in the forest sector and in society's perceptions of the role of the forests are taking place in the context of a stabilizing global demand for industrial wood. This section focuses on industrial wood consumption (which at equilibrium also equals production). Figure 1 presents global production/consumption of industrial roundwood over the past two decades. Amazingly, despite the large increases in global economic activity, wealth and world population over the past two decades, the total consumption of industrial wood has barely changed. Note that although this period experienced some minor economic downturns, a major characteristic of the period was widespread economic growth, including the emergence of China and other countries in Asia as important economic powers. Nevertheless, worldwide production (and consumption) was essentially flat over the most recent two-decade period.
Interestingly, the rate of wood consumption growth has deviated from that of the earlier several decades, where wood consumption had experienced modest growth. As shown in Table 1, the rate of worldwide wood consumption growth has declined gradually but consistently over the past half-century. Hence, the lack of growth in worldwide consumption (and production) of the past two decades can be viewed as consistent with the longer-term gradual reduction of consumption/production growth toward zero (or perhaps even future negative values).

Figure 1: Worldwide Consumption
World Industrial Roundwood Production


