This study evaluated the effects on forest resources and forest product markets of three contrasting mass timber demand scenarios (Conservative, Optimistic, and Extreme), up to 2060, in twelve selected countries in Asia, Europe, North America, and South America. Analyses were carried out by utilizing the FOrest Resource Outlook Model, a partial market equilibrium model of the global forest sector. The findings suggest increases in global softwood lumber production of 8, 23, and 53 million m³ per year by 2060, under the Conservative, Optimistic, and Extreme scenarios, respectively, leading to world price increases of 2%, 7%, and 23%, respectively. This projected price increase is relative to the projected price in the reference scenario, altering prices, production, consumption, trade of forest products, timber harvest, forest growth, and forest stock in individual countries. An increase in softwood lumber prices due to increased mass timber demand would lead to the reduced consumption of softwood lumber for traditional end-use (e.g., light-frame construction), suggesting a likely strong market competition for softwood lumber between the mass timber and traditional construction industries. In contrast, the projected effect on global forest stock was relatively small based on the relatively fast projected biomass growth in stands assumed to be regenerated after harvest.

As the need to address climate change grows more urgent, policymakers, businesses, and others are seeking innovative approaches to remove carbon dioxide emissions from the atmosphere and decarbonize hard-to-abate sectors. Forests can play a role in reducing atmospheric carbon. However, there is disagreement over whether forests are most effective in reducing carbon emissions when left alone versus managed for sustainable harvesting and wood product production. Cross-laminated timber is at the forefront of the mass timber movement, which is enabling designers, engineers, and other stakeholders to build taller wood buildings. Several recent studies have shown that substituting mass timber for steel and concrete in mid-rise buildings can reduce the emissions associated with manufacturing, transporting, and installing building materials by 13%-26.5%. However, the prospect of increased utilization of wood products as a climate solution also raises questions about the impact of increased demand for wood on forest carbon stocks, on forest condition, and on the provision of the many other critical social and environmental benefits that healthy forests can provide. A holistic assessment of the total climate impact of forest product demand across product substitution, carbon storage in materials, current and future forest carbon stock, and forest area and condition is challenging, but it is important to understand the impact of increased mass timber utilization on forests and climate, and therefore also on which safeguards might be necessary to ensure positive outcomes. To thus assess the potential impacts, both positive and negative, of greater mass timber utilization on forests ecosystems and emissions associated with the built environment, The Nature Conservancy (TNC) initiated a global mass timber impact assessment (GMTIA), a five-part, highly collaborative research program focused on understanding the potential benefits and risks of increased demand for mass timber products on forests and identifying appropriate safeguards to ensure positive outcomes.

Markov decision process models were extended to reflect some consequences of the risk attitude of forestry decision makers. One approach consisted of maximizing the expected value of a criterion subject to an upper bound on the variance or, symmetrically, minimizing the variance subject to a lower bound on the expected value. The other method used the certainty equivalent criterion, a weighted average of the expected value and variance. The two approaches were applied to data for mixed softwood–hardwood forests in the southern United States with multiple financial and ecological criteria. Compared with risk neutrality or risk seeking, financial risk aversion reduced expected annual financial returns and production and led to shorter cutting cycles that lowered the expected diversity of tree species and size, stand basal area, stored CO₂e, and old-growth area.

There has been a significant increase in the use of wood pellets for energy in the past decade due in large part to their climate mitigation potential. Because of this, the demand for wood pellets is largely driven by policy, as well as socioeconomic development, making projections of future wood energy markets highly uncertain. The aim of this study is to provide projections of future wood energy market trends under five distinct socioeconomic scenarios based on the assumed future evolution of gross domestic product, population, technological change, trade openness, and bioenergy preferences using the FOrest Resource Outlook Model. In four out of the five scenarios considered, it is projected that the use of roundwood and mill chips, particles, and residuals will rise in order to produce a growing output of wood pellets in the United States and globally. In terms of international markets, the global dominance of Europe’s demand for wood, to help that continent achieve its own climate goals, further explains the sustained and growing supply position of the U.S. South regions to meet that demand. Taken together, the projections suggest emerging bioenergy markets will drive increased competition for inputs with other manufacturers, particularly in the U.S. South regions.

While extreme weather events are often localized, the potential effects on global forests can be far reaching due to the interconnected nature of forest product markets. To better understand these dynamics, this study leverages historical forest‐based wind damage data in the United States and applies this information as shocks within a global forest sector outlook model. A large, localized wind event modeled as a shock to the US South creates a one‐time increase of 18.7 million m³ from salvage harvest operations, equal to over 4% of national harvest. This crowds out traditional harvest activities, leading to downward pressure on prices in the short run, followed by a persistent effect that could take approximately 25 years to dissipate from markets. Average annual wind damage contributes downward pressure on roundwood prices between 1% and 4% in the United States, and this effect is distributed to other countries. The findings suggest that large, localized shocks reverberate across regions and wood product markets due to their interconnected supply chains and trade patterns, and these impacts have important temporal dynamics. Another key result is that the magnitude of these effects are offset by endogenous market reactions in other markets. In other words, unaffected regions change their harvesting patterns in order to compensate for changes in the availability of fiber, shedding light on the importance of capturing global channels as large shocks materialize in changes in market dynamics internationally. Monte Carlo simulations suggest a wide confidence band on salvage harvest rates and prices.