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Introduction

• Study focuses on the impact of Federal forest policy on community prosperity in the Pacific Northwest, particularly in rural areas.

• Key components of the analysis:

  • Economic returns from forests: log harvesting and recreation/amenities.

  • Federal ownership of forestland significantly influences local economies.

Federal Forest Management Policy Shift

• Major policies began in the late 1980s to protect habitats, especially the Northern Spotted Owl.

• The Northwest Forest Plan (NWFP) implemented in 1994:

  • Shifted management of 24 million acres of federal forestland.

  • Prioritized old-growth tree protection and habitat for threatened species over timber production.

  • Resulted in a reduction of 11 million acres from production to protection.

Timber Harvest Trends in Oregon

• Oregon’s federal timber harvest dropped sharply from 5 billion board feet in 1989 to less than 200 million board feet by 2001.

• Private land harvests remained stable at over 3 billion board feet annually.

• The wood products industry underwent major structural changes with many mills closing, impacting employment.

Economic Impact on Communities

• Average direct job loss per mill closure: approximately 100 jobs.

• The median population of affected communities is under 2000, heightening the impact of mill closures on community viability.

• Explores how federal policies have influenced:

  • Population growth

  • Property values

  • Median household income in the Pacific Northwest.

Research on Economic Effects of Timber Harvest Reduction

Job Losses and Amenities

• Studies indicate significant job losses due to NWFP, with estimates ranging from 13,000 to 147,000 jobs.

• Despite job losses, resource conservation may enhance local amenities, attracting migration and tourism.

• Notable findings from Eichman et al. (2010) suggests:

  • NWFP led to reduced employment but slightly increased net migration.

  • Positive net migration did not compensate for job losses.

Impact of Natural Amenities

• Review of studies indicates that amenities generally:

  • Increase local population and employment.

  • Some studies suggest amenity-rich areas may experience lower wage levels due to compensating differentials.

• Contrasting results exist regarding income impacts:

  • Some studies show negative effects on incomes in amenity-rich areas.

Localized Effects of NWFP

• The NWFP created conflicting economic opportunities:

  • Increased amenities and tourism benefits for some communities.

  • Decrease in available timber led to reduced economic opportunities in logging-dependent communities.

• Analysis utilized community-level data to reveal:

  • Varied effects across communities based on dependence on logging.

  • Identified NWFP-adjacent communities and impacts based on proximity to protected land.

Findings on Property Values and Income

• Research findings suggest:

  • NWFP increased real property values near protected forests, with varying impacts based on community type.

  • Logging-dependent communities faced negative effects initially but later showed potential for amenity-driven growth post-2000.

• No significant demographic changes were observed in communities with or without mill closures after 2000.

Conclusion on Community Wealth Distribution

• The NWFP’s implementation resulted in:

  • Enhanced wealth in proximity to protected lands.

  • Redistribution of economic benefits from historically timber-dependent communities to amenity-rich NWFP-adjacent communities.

• Communities more than 10 miles from protected land saw less growth in wealth, highlighting the importance of forest policy in local economies.

References

• Chen, Y. & Weber, B. (2011). Federal forest policy and rural income.

• Eichman et al. (2010). Impact of NWFP on local employment and migration.

• Waltert, F. & Schlapfer, F. (2010). Effects of landscape amenities on local economies.