Eastern Canada and Northeastern US*

Extreme weather events such as the ice storm that affected eastern Canada and the Northeastern US in January of 1998 have significant impacts on both human populations and forests. This case study examines the economic impacts of the ice storm on the residential market for fuelwood. It is hypothesized that demand for fuelwood will increase due to the failure of non-wood heating sources during the ice storm. In addition, damage to trees in the region should increase the supply of fuelwood; the net effect of these outward shifts of supply and demand on price is not known. A household level survey administered to over one thousand households indicates that less than half of the households in the affected region relied on wood burning technologies as a source of heat for their homes at the time of the storm. However, those households with wood burning technologies were better able to manage during the ice storm. Forest managers or forest product producers who have information regarding extreme weather events have the option to undertake various management strategies to lessen the economic and biophysical impacts of ice storms on forests