Markets

This chapter describes ways that new and emerging markets that use and affect forest and rangeland products can be measured.

Associated Indicators


Acres of California Forestland Being Managed as Carbon Offset Projects

Measure the impact of carbon offset projects on management of California forestlands. There are two types of offset projects. First, under the California Cap-and-Trade Program, the Air Resources Board has the authority to approve forestry compliance offset projects. Project types include reforestation, improved forest management, and avoided conversion. Second, there are voluntary forestry offset projects that have been approved by voluntary agencies such as the Climate Action Reserve (Reserve), the American Carbon Registry (ACR), and the Verified Carbon Standard (VCS). The acreage in California being managed for carbon offset projects provides a measure of the impact of these programs on actual forest management in California, in terms of land managed to maintain or improve carbon storage, and to provide additional environmental benefits such as improved water quality and habitat.

Amount of land under forest certification programs

Certification of forestry operations was developed to provide assurance to wood consumers/users that the operations are not destructive to forest ecosystems or nearby communities. There has been debate over whether or not certified operations are actually sustainable (e.g., allowing clear-cutting). One advantage of certified operations is that there may be more transparency about the types of operations.

Capital expenditures by wood product manufacturers

Locating wood product manufacturing requires a steady supply of wood and a trained, or trainable work-force. If wood product manufacturers invest in capacity a region/municipality, it is a sign that long-term employment in wood products industries is more likely.

Contribution of Forest Biomass to California Electricity Generation

Measure contribution of forest biomass towards attainment of policy goals for use of renewable energy sources. California's Renewables Portfolio Standard (RPS) requires investor-owned utilities, electric service providers, and community choice aggregators to increase procurement from eligible renewable energy resources to 33% of total procurement by 2020 (CPUC). Forest biomass is one of many eligible sources.

Contribution of Forest-based Biomass to Production of Low-carbon Biofuels

Measures the contribution of forest-based biomass towards attainment of policy goals set by the California Low-Carbon Fuel Standard. California’s Low-Carbon Fuel Standard, established by AB32 (2006) and Executive Order S-01-07 (2007), sets a goal of a 10% reduction in carbon intensity of transportation fuels by 2020. Biofuels produced from wood biomass are one potential source to achieve the target.

Contribution of Renewable Energy Sources to California Electricity Generation

Measure progress towards attainment of policy goals for use of renewable energy sources. California's Renewables Portfolio Standard (RPS) requires investor-owned utilities, electric service providers, and community choice aggregators to increase procurement from eligible renewable energy resources to 33% of total procurement by 2020 (CPUC). Eligible sources relevant to forest and rangelands include biomass, geothermal, solar, wind, and small hydroelectric.

Forest ecosystem services contributions to society

This indicator will produce tabular information on trends in monetary measures of contributions to society and the state’s quality-of-life from three different ecosystem services: recreation, passive use values, and carbon sequestration values. Maintaining and enhancing forest’s non-commodity contributions to state and local economies, communities, and to the state's quality-of-life are very important. These values, such as clean water, habitat for fisheries, and scenery are often taken for granted because they are not generally traded in markets. As such, they have no ‘price’ and are therefore seemingly provided for “free”.

Forest products sector vitality

This indicator will produce tabular and graphical information on historical and current trends in sales and competitiveness of the state’s forest products sector.

Forestry: Agricultural Subsidies represented by Nominal Rates of Assistance (NRA) by country

Public subsidies for agricultural production and agrochemical inputs exacerbate environmental pressures by encouraging intense chemical use, the expansion of agriculture to sensitive areas, and overexploitation of resources (OECD 2004). The Agricultural Subsidies indicator measures subsidies as a proportion of agricultural value. For countries where this data is available, the authors use the Nominal Rate of Assistance (NRA), defined as the price of a product in the domestic market, less its price at a country’s border, expressed as a percentage of the border price, and adjusted for transport costs and quality differences. Organisation for Economic Co-operation and Development. 2004. Environmental Performance Review of Canada - Good Progress, Much to be Done. Paris: OECD.