| This study evaluates wood fuel's substitution potential in a modern American economy. Purpose is to show how cost-efficient wood fuels were during pre- and post-oil embargo periods, identify fuels for which wood showed positive cost savings potential, and show how to make preliminary cost savings comparisons. Although a cost minimization objective is assumed, safety and environmental concerns are also discussed.; Focus narrows progressively from a national supply including all fuel and product derivatives; e.g., gasoline, plastics, lubricating oil, and asphalt for petroleum based fuels, through sectorial demand and price situations, to decision criteria. Economic implications of firewood substitution are examined. Analyses and decision criteria are based upon energy time series quantity and price data for the 14-year period, 1967-80. Findings include the following.; Annual wood fuel supply potential, excluding reductions in growing stock and diversions from conventional products, amounts to 731 M tons (11.7 quads of energy). Only 156 M tons (2.5 quads), or 21 percent of the total, is currently economic.; If labor costs are ignored, wood- fuel oil substitutes became marginally economic in the commercial sector after 1974. If labor, maintenance, and repair are included in a cost equation, both natural gas and coal were better oil substitutes than wood.; Since 1974, only wood- electricity electricity substitutes provided cost savings in residential heating. High costs of delivered firewood and high transportation costs for free firewood--average haul distance is 200 miles per cord--substituting wood heat for any fossil fuel resulted in negative savings between 1974-80.; Industrial firewood substitution potential was also strong. The pulp and paper industry substituted about 52 percent of their energy needs with bark, wood, and black liquor solids. Residential firewood prices, which were more than double delivered wood prices to the paper industry, suggest the residential sector can outbid the industry for hardwood resources. Intersector price disparity encourages crossovers between industrial pulpwood and residential firewood. |
