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Sequester or substitute—Consequences of increased production of wood based energy on the carbon balance in Finland

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  • Kallio, A.M.I.
  • Salminen, O.
  • Sievänen, R.

Abstract

Forests play an important role in mitigating climate change. Forests can sequester carbon from the atmosphere and provide biomass, which can be used to substitute for fossil fuels or energy-intensive materials. International climate policies favor the use of wood to substitute for fossil fuels rather than using forests as carbon sink. We examine the trade off between sequestering carbon in forests and substituting wood for fossil fuels in Finland. For Finland to meet its EU targets for the use of renewable energy by 2020, a considerable increase in the use of wood for energy is necessary. We compare scenarios in which the wood energy targets are fully or partially met to a reference case where policies favoring wood based energy production are removed. Three models are used to project fossil fuel substitution and changes in forest carbon sinks in the scenarios through 2035.

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  • Kallio, A.M.I. & Salminen, O. & Sievänen, R., 2013. "Sequester or substitute—Consequences of increased production of wood based energy on the carbon balance in Finland," Journal of Forest Economics, Elsevier, vol. 19(4), pages 402-415.
    • Handle: RePEc:eee:foreco:v:19:y:2013:i:4:p:402-415
    DOI: 10.1016/j.jfe.2013.05.001
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    Cited by:

    1. Sampo Soimakallio & Tuomo Kalliokoski & Aleksi Lehtonen & Olli Salminen, 2021. "On the trade-offs and synergies between forest carbon sequestration and substitution," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 26(1), pages 1-17, January.
    2. Caurla, Sylvain & Delacote, Philippe & Lecocq, Franck & Barthès, Julien & Barkaoui, Ahmed, 2013. "Combining an inter-sectoral carbon tax with sectoral mitigation policies: Impacts on the French forest sector," Journal of Forest Economics, Elsevier, vol. 19(4), pages 450-461.
    3. Mäntymaa, Erkki & Artell, Janne & Forsman, Jukka T. & Juutinen, Artti, 2023. "Is it more important to increase carbon sequestration, biodiversity, or jobs? A case study of citizens' preferences for forest policy in Finland," Forest Policy and Economics, Elsevier, vol. 154(C).
    4. Miguel Riviere & Sylvain Caurla & Philippe Delacote, 2020. "Evolving Integrated Models From Narrower Economic Tools : the Example of Forest Sector Models," Post-Print hal-02512330, HAL.
    5. Eyvindson, Kyle & Repo, Anna & Mönkkönen, Mikko, 2018. "Mitigating forest biodiversity and ecosystem service losses in the era of bio-based economy," Forest Policy and Economics, Elsevier, vol. 92(C), pages 119-127.
    6. Moiseyev, Alexander & Solberg, Birger & Kallio, A. Maarit I., 2014. "The impact of subsidies and carbon pricing on the wood biomass use for energy in the EU," Energy, Elsevier, vol. 76(C), pages 161-167.
    7. Sena, Kenton & Ochuodho, Thomas O. & Agyeman, Domena A. & Contreras, Marco & Niman, Chad & Eaton, Dan & Yang, Jian, 2022. "Wood bioenergy for rural energy resilience: Suitable site selection and potential economic impacts in Appalachian Kentucky," Forest Policy and Economics, Elsevier, vol. 145(C).
    8. Eriksson, Mathilda, 2016. "The Role of the Forest in Climate Policy," Umeå Economic Studies 927, Umeå University, Department of Economics.
    9. Pilpola, Sannamari & Lund, Peter D., 2018. "Effect of major policy disruptions in energy system transition: Case Finland," Energy Policy, Elsevier, vol. 116(C), pages 323-336.
    10. Jonsson, Ragnar & Rinaldi, Francesca & Pilli, Roberto & Fiorese, Giulia & Hurmekoski, Elias & Cazzaniga, Noemi & Robert, Nicolas & Camia, Andrea, 2021. "Boosting the EU forest-based bioeconomy: Market, climate, and employment impacts," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    11. Kallio, A.M.I. & Salminen, O. & Sievänen, R., 2016. "Forests in the Finnish low carbon scenarios," Journal of Forest Economics, Elsevier, vol. 23(C), pages 45-62.
    12. Vass, Miriam Münnich & Elofsson, Katarina, 2016. "Is forest carbon sequestration at the expense of bioenergy and forest products cost-efficient in EU climate policy to 2050?," Journal of Forest Economics, Elsevier, vol. 24(C), pages 82-105.
    13. Eriksson, Mathilda & Brännlund, Runar & Lundgren, Tommy, 2018. "Pricing forest carbon: Implications of asymmetry in climate policy," Journal of Forest Economics, Elsevier, vol. 32(C), pages 84-93.
    14. Miguel RIVIERE & Sylvain CAURLA, 2018. "Integrating non-timber objectives into bio-economic models of the forest sector: a review of recent innovations and current shortcomings," Working Papers of BETA 2018-26, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    15. Murphy, Fionnuala & Sosa, Amanda & McDonnell, Kevin & Devlin, Ger, 2016. "Life cycle assessment of biomass-to-energy systems in Ireland modelled with biomass supply chain optimisation based on greenhouse gas emission reduction," Energy, Elsevier, vol. 109(C), pages 1040-1055.
    16. Harjanne, Atte & Korhonen, Janne M., 2019. "Abandoning the concept of renewable energy," Energy Policy, Elsevier, vol. 127(C), pages 330-340.
    17. Pohjola, Johanna & Laturi, Jani & Lintunen, Jussi & Uusivuori, Jussi, 2018. "Immediate and long-run impacts of a forest carbon policy—A market-level assessment with heterogeneous forest owners," Journal of Forest Economics, Elsevier, vol. 32(C), pages 94-105.
    18. Sokka, L. & Sinkko, T. & Holma, A. & Manninen, K. & Pasanen, K. & Rantala, M. & Leskinen, P., 2016. "Environmental impacts of the national renewable energy targets – A case study from Finland," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 1599-1610.
    19. Vauhkonen, Jari & Packalen, Tuula, 2018. "Uncertainties related to climate change and forest management with implications on climate regulation in Finland," Ecosystem Services, Elsevier, vol. 33(PB), pages 213-224.

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    More about this item

    Keywords

    Wood energy; Green house gases; Forest sector; Carbon debt;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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