Integrating forest-based industry and forest resource modeling

Abstract: This paper introduces a modeling approach for the assessment of policy options within the forest-based bioeconomy. The feedback between the forestry dynamics model and the economic model of the global forest-based sector of the proposed framework is essential, not only for response analysis as to the development of forest resources and for a correct assessment of future harvesting potentials, but also for the assessment of the impact of different management regimes on wood-based product markets. Test runs of the modeling framework on a Swedish case highlight the necessity of considering timber assortments for a comprehensive integration of forest resources and wood-based commodity market dynamics. Hence, the composition of harvest demand in terms of timber assortment affects the allocation of harvesting activities and, consequently, the development of forest resources (and thus future harvest potentials), as well as the production, trade and consumption of wood-based products.