Scandinavian Working Papers in Economics
Umeå Economic Studies,
Umeå University, Department of Economics
No 794: Damned if you do, Damned if you don't – Reduced Climate Impact vs. Sustainable Forests in Sweden
Erik Geijer (), Göran Bostedt () and Runar Brännlund ()
Additional contact information
Erik Geijer: Dept of Forest Economics, Postal: Swedish University of Agricultural Sciences, S-901 83 Umeå, Sweden
Göran Bostedt: Dept of Forest Economics, Postal: Swedish University of Agricultural Sciences, S-901 83 Umeå, Sweden
Runar Brännlund: Department of Economics, Umeå University, Postal: S 901 87 Umeå, Sweden
Abstract: The main objective of this paper is to analyze the potential goal conflict between two of Sweden’s environmental objectives: Sustainable Forests and Reduced Climate Impact – or, more precisely, the conflict between forest conservation and the supply of wood fuel. To accomplish this, we use a forest sector model that includes the suppliers and major users of roundwood. The econometric results, based on a data set that spans 40 years, show that all the own price elasticities have the expected signs. Among the three forestry products, the supply and (long-term) demand of forest fuel seems to be most sensitive to a price change. In a second step, the estimated model is used to simulate the effect of increased forest conservation -- the Sustainable Forest objective -- on the supply of wood fuel. If oil is used as a substitute, Swedish emissions of greenhouse gases will increase by almost 0.92 percent, which indicates a clear conflict with the Reduced Climate Impact objective.
Keywords: Goal conflict; Wood fuels; Forest sector model; Roundwood markets; Forest conservation
27 pages, November 27, 2009
Full text files
DownloadAsset.action...Id=3&assetKey=ues794
Questions (including download problems) about the papers in this series should be directed to David Skog ()
Report other problems with accessing this service to Sune Karlsson ().
RePEc:hhs:umnees:0794This page generated on 2024-09-13 22:17:26.