This one’s a little better.
In Pulping the South Ricardo Carrere and Larry Lohmann examine the practices of the globalized wood pulp and paper industry. They focus in part on the ecological consequences of the plantation method of growing and harvesting wood. They also explore the social and political systems which have evolved to support and encourage the current practices. In the end they advocate the use of distributed, smaller scale production from local agricultural byproducts.
They convincingly demonstrate the risks of concentrating power into the hands of few, distant interests. The work has been structured in a capital intense arrangement involving fewer people yet producing as much or more pulp and paper, paralleling the progression of many other industries. Likewise, this production also damages the environment with high externalities. By allowing distant investors and interests to set the agenda for local means of production, there is less sensitivity both to issues of depletion and to issues of pollution. Further, as the economic power concentrates in fewer people, the political agenda becomes similarly influenced.
Relying on economic theories relating to specialization and comparative advantage, it seems economically rational to engage in these more capital intensive methods of production. These processes do increase production and reduce the labor inputs required, theoretically freeing those individuals to find other employment. This is an important point, that the authors do not seem to attend to. However, these labor adjustments are not automatic processes. Further, competing land interests have consequences for the residents that are not accounted for in the marketplace, and the destruction of local communities and ways of life by agriforestry’s environmental effects are real problems.
The small scale distributed arrangements proposed by the authors also have hidden costs. While distributed production may be more socially just, that does not mean that it is a strong economic competitor to the existing system. Regional variation in the inputs, also suggested by the author suggests that different methodologies and technologies may be needed in different areas, requiring significant research and development investments. Distributing production throughout an area also increases the transportation expenses of the raw materials, while trees effectively concentrate large quantities of plant fibers on a relatively small amount of land, reducing these costs. Small scale distributed production also faces the loss of economies of scale, both external and internal in the production process. If there are common elements to consider.
The diffusion and reduction in scale of the production of pulp and paper has many potential benefits. To encourage its economic viability, it is important to carefully cultivate local techniques and methodologies. Additionally, looking for ways to integrate this with other production methodologies, such as making secondary use of waste heat from chemical pulping processes for domestic heating needs and increasing investment in human capital for local social benefit. A complement to this would be the easing of labor transitions, perhaps even into the development and implementation of these new techniques, through investments in education and other sorts of human capital. It is important to realize that competitive economic systems are also crucial to sustainability and social justice.