Reduction of Forest Areas Available for Wood Supply (FAWS) - Impacts on the Economic Situation of the Austrian Forest-Based Sector

Wooden biomass availability and the possibility of a scarcity due to the reduction of forest areas available for wood supply (FAWS) are of crucial importance to the Austrian forest-based sector. The simulation model of the Austrian forest-based sector (FOHOW) was used to simulate a base-scenario (incl. the implementation of the National Renewable Energy Action Plan 2010) as well as scenarios with a 10% reduction of the Austrian FAWS area. In addition, it was assumed in one of the scenarios that Austrian roundwood imports would decrease, posing an even more tightening wood supply situation on the forest-based sector. The aim of the study was the analysis of the impacts of reduced wood supply on the value-added wood chain. A 10% reduction of FAWS area increases the pressure on the remaining FAWS regarding higher harvests there, but also on the FAWS in neighbouring countries (higher roundwood imports). But lower domestic roundwood supply cannot be fully compensated. Forest-based industry production goes down and international competition decreases due to higher roundwood costs and product prices. When decreasing roundwood imports are assumed in addition, the sector will suffer from the following impacts: The goals of the National Renewable Energy Action Plan will be beyond reach in quantitative terms, but also the costs of wooden biomass for energy rise dramatically. The forest-industry has to further reduce capacities which has strong negative impacts on employment, value-added and export-values of the sector. The study clearly reveals the conflicting goals of nature conservation, climate protection and economy. A soft mobilisation of increment by a minor cutback in growing stock like this is the case in the base-scenario seems to be the most positive and stable development for all stakeholders; political goals can be reached, economic risks are low and a long-term balance between economic and ecological sustainability can be expected.