IDEAS home Printed from https://ideas.repec.org/a/eee/forpol/v163y2024ics138993412400056x.html
   My bibliography  Save this article

Analysis of location, feedstock availability, and economic impacts of potential mass timber processing facilities in Michigan

Author

Listed:
  • Khanal, Naresh
  • Pokharel, Raju
  • Poudel, Jagdish
  • Gc, Shivan
  • Shannon, Elliot
  • Huff, Emily
  • Finley, Andrew

Abstract

Mass timber, an engineered wood product, offers exceptional strength and versatility as a building material, is lightweight, which makes it easy to transport and assemble, is aesthetically appealing, and offers the potential to reduce GHG emissions. This study attempts to identify the potential locations for mass timber production in Michigan, estimate the available feedstock, and evaluate the economic impacts of mass timber production on the state's economy. Procurement zones for all softwood lumber producers in Michigan were identified and overlaid to create competition hotspots for the softwood sawtimber industry. Two potential locations were identified for mass timber production within the state. Forest Inventory and Analysis (FIA) data was used to estimate the annual sustainable availability of softwood (ASAW) for mass timber production. Finally, IMPLAN was used to assess the economic impacts associated with mass timber production in Michigan. We identified two sawmills for mass timber production and concluded that there is sufficient ASAW for mass timber production in these facilities. Producing 12,429 m3 of mass timber supports at least 93 total jobs (35 direct, 29 indirect, and 29 induced) with a total output of $12.52 million in Michigan's economy. Similarly, upgrading the capacity of existing sawmills to supply lumber for mass timber production will result in 34 additional jobs with a total output of $5.63 million.

Suggested Citation

  • Khanal, Naresh & Pokharel, Raju & Poudel, Jagdish & Gc, Shivan & Shannon, Elliot & Huff, Emily & Finley, Andrew, 2024. "Analysis of location, feedstock availability, and economic impacts of potential mass timber processing facilities in Michigan," Forest Policy and Economics, Elsevier, vol. 163(C).
    • Handle: RePEc:eee:forpol:v:163:y:2024:i:c:s138993412400056x
    DOI: 10.1016/j.forpol.2024.103203
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S138993412400056X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.forpol.2024.103203?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Shu, Kesheng & Schneider, Uwe A. & Scheffran, Jürgen, 2017. "Optimizing the bioenergy industry infrastructure: Transportation networks and bioenergy plant locations," Applied Energy, Elsevier, vol. 192(C), pages 247-261.
    2. Aguilar, Francisco X., 2009. "Spatial econometric analysis of location drivers in a renewable resource-based industry: The U.S. South Lumber Industry," Forest Policy and Economics, Elsevier, vol. 11(3), pages 184-193, May.
    3. Prakash Nepal & Craig M. T. Johnston & Indroneil Ganguly, 2021. "Effects on Global Forests and Wood Product Markets of Increased Demand for Mass Timber," Sustainability, MDPI, vol. 13(24), pages 1-26, December.
    4. Hagadone, Todd A. & Grala, Robert K., 2012. "Business clusters in Mississippi's forest products industry," Forest Policy and Economics, Elsevier, vol. 20(C), pages 16-24.
    5. Akca, Mehmet Sadik & Sarikaya, Omer Visali & Doker, Mehmet Fatih & Ocak, Fatih & Kirlangicoglu, Cem & Karaaslan, Yakup & Satoglu, Sule Itir & Altinbas, Mahmut, 2023. "A detailed GIS based assessment of bioenergy plant locations using location-allocation algorithm," Applied Energy, Elsevier, vol. 352(C).
    6. Dahal, Ram P. & Aguilar, Francisco X. & McGarvey, Ronald G. & Becker, Dennis & Abt, Karen L., 2020. "Localized economic contributions of renewable wood-based biopower generation," Energy Economics, Elsevier, vol. 91(C).
    7. Song, Nianfu & Chang, Sun Joseph & Aguilar, Francisco X., 2011. "U.S. softwood lumber demand and supply estimation using cointegration in dynamic equations," Journal of Forest Economics, Elsevier, vol. 17(1), pages 19-33, January.
    8. Jeff Comnick & Luke Rogers & Kent Wheiler, 2021. "Increasing Mass Timber Consumption in the U.S. and Sustainable Timber Supply," Sustainability, MDPI, vol. 14(1), pages 1-14, December.
    9. Comber, Alexis & Dickie, Jennifer & Jarvis, Claire & Phillips, Martin & Tansey, Kevin, 2015. "Locating bioenergy facilities using a modified GIS-based location–allocation-algorithm: Considering the spatial distribution of resource supply," Applied Energy, Elsevier, vol. 154(C), pages 309-316.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Picciano, Paul & Aguilar, Francisco X. & Burtraw, Dallas & Mirzaee, Ashkan, 2022. "Environmental and socio-economic implications of woody biomass co-firing at coal-fired power plants," Resource and Energy Economics, Elsevier, vol. 68(C).
    2. Ma, Qiuzhuo & Paudel, Krishna P. & Cui, Luqi, 2018. "A multi-objective optimization problem for using poultry litter in electricity production," Applied Energy, Elsevier, vol. 228(C), pages 1220-1242.
    3. Pokharel, Raju & Grala, Robert K. & Grebner, Donald L., 2017. "Woody residue utilization for bioenergy by primary forest products manufacturers: An exploratory analysis," Forest Policy and Economics, Elsevier, vol. 85(P1), pages 161-171.
    4. Guo, Jinggang & Prestemon, Jeffrey & Johnston, Craig, 2023. "Forest market outlook in the Southern United States," Forest Policy and Economics, Elsevier, vol. 157(C).
    5. Jiang, Dong & Wang, Qian & Ding, Fangyu & Fu, Jingying & Hao, Mengmeng, 2019. "Potential marginal land resources of cassava worldwide: A data-driven analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 167-173.
    6. Jason Wood & James Nolan, 2021. "Plant location decisions in the ethanol industry: a dynamic and spatial analysis," Computational Economics, Springer;Society for Computational Economics, vol. 58(1), pages 103-132, June.
    7. Álvarez-Díaz, Marcos & González-Gómez, Manuel & Otero-Giráldez, María Soledad, 2018. "Main determinants of export-oriented bleached eucalyptus kraft pulp (BEKP) demand from the north-western regions of Spain," Forest Policy and Economics, Elsevier, vol. 96(C), pages 112-119.
    8. Costa, Fabrício Rodrigues & Ribeiro, Carlos Antonio Alvares Soares & Marcatti, Gustavo Eduardo & Lorenzon, Alexandre Simões & Teixeira, Thaisa Ribeiro & Domingues, Getulio Fonseca & Castro, Nero Lemos, 2020. "GIS applied to location of bioenergy plants in tropical agricultural areas," Renewable Energy, Elsevier, vol. 153(C), pages 911-918.
    9. Hagadone, Todd A. & Grala, Robert K., 2012. "Business clusters in Mississippi's forest products industry," Forest Policy and Economics, Elsevier, vol. 20(C), pages 16-24.
    10. Kylie Clay & Lauren Cooper, 2022. "Safeguarding against Harm in a Climate-Smart Forest Economy: Definitions, Challenges, and Solutions," Sustainability, MDPI, vol. 14(7), pages 1-13, April.
    11. Nepal, Sakar & McConnell, T. Eric & Barefield, Alan & Grala, Robert, 2023. "Mississippi USA'S timber severance tax apportionments and their economic contributions," Forest Policy and Economics, Elsevier, vol. 157(C).
    12. Cebi, Selcuk & Ilbahar, Esra & Atasoy, Aylin, 2016. "A fuzzy information axiom based method to determine the optimal location for a biomass power plant: A case study in Aegean Region of Turkey," Energy, Elsevier, vol. 116(P1), pages 894-907.
    13. Keith L. Kline & Virginia H. Dale & Erin Rose & Bruce Tonn, 2021. "Effects of Production of Woody Pellets in the Southeastern United States on the Sustainable Development Goals," Sustainability, MDPI, vol. 13(2), pages 1-19, January.
    14. Pokharel, Raju & Latta, Gregory S., 2020. "A network analysis to identify forest merchantability limitations across the United States," Forest Policy and Economics, Elsevier, vol. 116(C).
    15. Saha, Mithun & Eckelman, Matthew J., 2015. "Geospatial assessment of potential bioenergy crop production on urban marginal land," Applied Energy, Elsevier, vol. 159(C), pages 540-547.
    16. Hammad, Ahmed W A & Akbarnezhad, Ali & Rey, David, 2017. "Sustainable urban facility location: Minimising noise pollution and network congestion," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 107(C), pages 38-59.
    17. Xiang Zhao & Xiaoya Ma & Kun Wang & Yuqing Long & Dongjie Zhang & Zhanchun Xiao, 2017. "A Spatially Explicit Optimization Model for Agricultural Straw-Based Power Plant Site Selection: A Case Study in Hubei Province, China," Sustainability, MDPI, vol. 9(5), pages 1-19, May.
    18. Ronald A. Babula & Daowei Zhang, 2019. "Assessing the role of futures position substitutability in a monthly model of factor demand for softwood lumber," Empirical Economics, Springer, vol. 56(3), pages 1097-1116, March.
    19. Zhang, Daowei & Nguyen, Ly, 2018. "Tariff and U.S. Paper Products Trade," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266771, Southern Agricultural Economics Association.
    20. Singlitico, Alessandro & Kilgallon, Ian & Goggins, Jamie & Monaghan, Rory F.D., 2019. "GIS-based techno-economic optimisation of a regional supply chain for large-scale deployment of bio-SNG in a natural gas network," Applied Energy, Elsevier, vol. 250(C), pages 1036-1052.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:forpol:v:163:y:2024:i:c:s138993412400056x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/forpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.