A multiperiod, regional, mathematical programming economic model is used to evaluate the potential economic impacts of global climatic change on the US forest sector. A wide range of scenarios for the biological response of forests to climate change are developed, ranging from small to large changes in forest growth rates. These scenarios are simulated in the economic forest sector model and results are summarized in response functions that may be used instead of rerunning the model as improved or altered biological response scenarios arise. The response functions are used to characterize broad impacts of climate change on the sector. We find that aggregate impacts (across all consumers and producers in the sector) are relatively small but that producers income and future welfare 30 to 40 yr in the future are most at risk. The forest sector is found to have adjustment mechanisms that mitigate climate change impacts, including interregional migration of production, substitution in consumption, and altered stand management.
KEY WORDS: Climate change · US forest · Sector analysis · Response functionResale or republication not permitted without written consent of the publisher Clim Res 15: 195-205, 2000 range of possible biological outcomes, the response functions summarize the model projections of an array of measures of sector performance as stimulated by a wide variety of changes in forest growth. Employing these functions, analysts can explore particular climate change scenarios and rapidly generate projections of the associated economic effects as new findings arise on biological growth impacts. The following sections of this paper describe problem background, prior studies and then the methods employed to develop the response functions. Subsequently, we illustrate how the resulting functions can be used to provide specific and general characterizations of impacts.
FOREST RESOURCE AND PRODUCT MARKET IMPACTS OF CLIMATE CHANGEGlobal atmospheric change would affect tree growing conditions, but the nature of the altered climate could vary substantially in different regions. Impacts on forests arise from increases in atmospheric CO 2 concentration, change in temperature regimes, and variations in patterns of rainfall over the year. These shifts would alter basic physiological processes in trees and soils, influencing tree growth and the yield of commercial products over time. The actual time pattern of change will be complex, owing to lags between atmospheric changes, climate effects and biological responses (see Winnett 1998 for a review of the growth change issues). Economic impacts resulting from growth changes will be further delayed due to the length of forestry rotations, generally involving 2 or more decades.1 Thus, an examination of the effects of climate change on forests needs to consider forest rotation decisions as well as lags between the onset of climate change and realized biological impacts. These dynamic aspects of climateinduced changes in forest yield need to be addressed with a model...