The nature and status of certification in the United States

Forest certification has been promoted as a market-based incentive for improved forest management. Indeed, U.S. producers are increasingly interested in whether they should become certified. However, the economic and market implications, as well as the current nature and status of certified wood markets in the United States, are not well understood. A review indicates that producers face both direct and indirect costs associated with adoption. These costs are expected to be covered by increased product prices, or the "green" premium. The overall impact on market equilibrium though is uncertain. For example, widespread certification could force marginal forest land to go out of commercial production. Current production of certified wood in the United States is limited to four major producers. Although the market for certified wood is distributed throughout the United States, merchants of certified products are located primarily on the west coast. Sawn wood, flooring, S2S lumber, and wholesale furniture are the most popular items.