journal article·2017

Estimating the Economic Impacts Generated by Small-Scale Wood Pellet Manufacturing in Western North Carolina

Adam Scouse, T. Eric McConnell, Richard Venditti

Forest Products Journal· Volume 67· Issue 3-4
Publisher page

Abstract

Abstract In an effort to identify opportunities for regional economic development for western North Carolina, this study investigated the economic impacts generated by collocating a 10,500-ton/yr wood pellet mill alongside a 10-million board foot hardwood sawmill in the Asheville–Brevard combined metropolitan statistical area. Using the analysis-by-parts methodology within the input–output analysis framework, a custom production function was built to describe a small-scale pellet manufacturing facility operating alongside a hardwood sawmill. The additional economic effects generated by a pellet mill collocation are described, along with upper and lower bounds that represent potential variability in the estimates caused by raw material price fluctuation. Last, the impacts generated by the collocated mills are compared with a similar increase in demand distributed among all forest products manufacturing sectors existing within the study area. The study found that wood product firms existing within the region had the opportunity to utilize excess woody biomass for pellet production and could diversify their product lines, create additional jobs, and stimulate value-added economic activity for the region.
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Research context

OpenAlex topics: Environmental Impact and Sustainability · Forest Management and Policy · Sustainable Industrial Ecology

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