Economic impacts of mass timber production using small-diameter wood from fuel reduction and restoration treatments in eastern Oregon
| Authors: | Naresh Khanal, Woodam Chung, John S. Hogland, Yong Chen, Andres Susaeta |
| Year: | 2026 |
| Type: | Scientific Journal |
| Station: | Rocky Mountain Research Station |
| DOI: | https://doi.org/10.1016/j.tfp.2026.101417 |
| Source: | Trees, Forests and People |
Abstract
The Blue Mountains ecoregion of eastern Oregon, encompassing the Malheur, Umatilla, and Wallowa–Whitman National Forests, faces escalating wildfire risk driven by historical fire exclusion and fuel accumulation. This study integrates spatially explicit fuel reduction and restoration treatment planning with mass timber production to simultaneously enhance fire resilience and stimulate rural economic development. Using TreeMap 2022 data and potential operational delineations, we found that 69% of forests exceed fire-resilient desired future conditions, with 31% prioritized as potential treatment units for mechanical thinning across three national forests. The small-diameter wood volume (10–23 cm diameter) for Ponderosa pine and Lodgepole pine, typically unmerchantable in conventional markets, was evaluated for mass timber production under three treatment scheduling scenarios: basecase20 (20 years), accelerated10 (10 years), and extended30 (30 years). Input–output modeling through IMPLAN revealed substantial regional economic impacts, generating 365 total jobs (direct, indirect, and induced) and $105 million in total output under the basecase20 scenario. Ripple effects were concentrated in logging, sawmilling, and transportation sectors along the I-84 corridor, demonstrating that each dollar invested in mass timber processing generates an additional 31 cents in the regional economy. These findings highlight a scalable pathway to offset restoration costs, reduce wildfire hazard, and revitalize rural communities through the utilization of small-diameter wood for value-added forest products.