IDEAS home Printed from https://ideas.repec.org/a/eee/forpol/v105y2019icp91-98.html
   My bibliography  Save this article

Assessing the impacts of rising fuelwood demand on Swedish forest sector: An intertemporal optimization approach

Author

Listed:
  • Guo, Jinggang
  • Gong, Peichen

Abstract

An increase in the demand for fuelwood has the potential to affect traditional timber production. Based on a partial equilibrium model of the Swedish forest sector, this paper evaluates the supply and price of sawlogs, pulpwood and fuelwood under differing levels of future fuelwood demand. The results indicate that an increasing demand for fuelwood would intensify the competition between pulpwood and fuelwood, which would cause the prices of pulpwood and fuelwood to increase. The pulpwood supply would decrease and the fuelwood supply would increase in response to fuelwood demand expansion. An increasing demand for fuelwood would affect the harvest of sawlogs positively, though the effect would be small. It is concluded that an increase in the use of fuelwood would affect mainly the pulp and paper industry in terms of the provision of raw materials. Besides, the annual increment of forest standing volume would exceed the harvest in all the scenarios analyzed, implying that the Swedish forests are a carbon sink.

Suggested Citation

  • Guo, Jinggang & Gong, Peichen, 2019. "Assessing the impacts of rising fuelwood demand on Swedish forest sector: An intertemporal optimization approach," Forest Policy and Economics, Elsevier, vol. 105(C), pages 91-98.
    • Handle: RePEc:eee:forpol:v:105:y:2019:i:c:p:91-98
    DOI: 10.1016/j.forpol.2019.05.020
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1389934118305094
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.forpol.2019.05.020?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Brannlund, Runar & Lundgren, Tommy, 2004. "A dynamic analysis of interfuel substitution for Swedish heating plants," Energy Economics, Elsevier, vol. 26(6), pages 961-976, November.
    2. Lecocq, Franck & Caurla, Sylvain & Delacote, Philippe & Barkaoui, Ahmed & Sauquet, Alexandre, 2011. "Paying for forest carbon or stimulating fuelwood demand? Insights from the French Forest Sector Model," Journal of Forest Economics, Elsevier, vol. 17(2), pages 157-168, April.
    3. Suttles, Shellye A. & Tyner, Wallace E. & Shively, Gerald & Sands, Ronald D. & Sohngen, Brent, 2014. "Economic effects of bioenergy policy in the United States and Europe: A general equilibrium approach focusing on forest biomass," Renewable Energy, Elsevier, vol. 69(C), pages 428-436.
    4. Kristöfel, Christa & Strasser, Christoph & Schmid, Erwin & Morawetz, Ulrich B., 2016. "The wood pellet market in Austria: A structural market model analysis," Energy Policy, Elsevier, vol. 88(C), pages 402-412.
    5. Alexandre Sauquet & Ahmed Barkaoui & Sylvain Caurla & Philippe Delacote & Franck Lecocq, 2011. "Paying for forest carbon or stimulating fuel wood demand? Insights from the French Forest Sector Model," Post-Print halshs-00602112, HAL.
    6. Kretschmer, Bettina & Peterson, Sonja, 2010. "Integrating bioenergy into computable general equilibrium models -- A survey," Energy Economics, Elsevier, vol. 32(3), pages 673-686, May.
    7. Carlsson, Mattias, 2012. "Bioenergy from the Swedish Forest Sector - A Partial Equilibrium Analysis of Supply Costs and Implications for the Forest Product Markets," Working Paper Series 2012:3, Swedish University of Agricultural Sciences, Department Economics.
    8. Moiseyev, Alexander & Solberg, Birger & Kallio, A. Maarit I., 2013. "Wood biomass use for energy in Europe under different assumptions of coal, gas and CO2 emission prices and market conditions," Journal of Forest Economics, Elsevier, vol. 19(4), pages 432-449.
    9. Ince, Peter J. & Kramp, Andrew D. & Skog, Kenneth E. & Yoo, Do-il & Sample, V. Alaric, 2011. "Modeling future U.S. forest sector market and trade impacts of expansion in wood energy consumption," Journal of Forest Economics, Elsevier, vol. 17(2), pages 142-156, April.
    10. Guo, Jinggang & Gong, Peichen & Brännlund, Runar, 2019. "Impacts of Increasing Bioenergy Production on Timber Harvest and Carbon Emissions," Journal of Forest Economics, now publishers, vol. 34(3-4), pages 311-335, November.
    11. Torjus Bolkesjø & Joseph Buongiorno & Birger Solberg, 2010. "Joint production and substitution in timber supply: a panel data analysis," Applied Economics, Taylor & Francis Journals, vol. 42(6), pages 671-680.
    12. Lundmark, Robert & Olsson, Anna, 2015. "Factor substitution and procurement competition for forest resources in Sweden," International Journal of Production Economics, Elsevier, vol. 169(C), pages 99-109.
    13. Kallio, A. Maarit I. & Anttila, Perttu & McCormick, Megan & Asikainen, Antti, 2011. "Are the Finnish targets for the energy use of forest chips realistic--Assessment with a spatial market model," Journal of Forest Economics, Elsevier, vol. 17(2), pages 110-126, April.
    14. Johnston, Craig M.T. & van Kooten, G. Cornelis, 2016. "Global trade impacts of increasing Europe's bioenergy demand," Journal of Forest Economics, Elsevier, vol. 23(C), pages 27-44.
    15. Geijer, Erik & Bostedt, Göran & Brännlund, Runar, 2011. "Damned if you do, damned if you do not--Reduced Climate Impact vs. Sustainable Forests in Sweden," Resource and Energy Economics, Elsevier, vol. 33(1), pages 94-106, January.
    16. Guo, Jinggang & Gong, Peichen, 2017. "The potential and cost of increasing forest carbon sequestration in Sweden," Journal of Forest Economics, Elsevier, vol. 29(PB), pages 78-86.
    17. Buongiorno, Joseph & Raunikar, Ronald & Zhu, Shushuai, 2011. "Consequences of increasing bioenergy demand on wood and forests: An application of the Global Forest Products Model," Journal of Forest Economics, Elsevier, vol. 17(2), pages 214-229, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Latta, Gregory S. & Baker, Justin S. & Beach, Robert H. & Rose, Steven K. & McCarl, Bruce A., 2013. "A multi-sector intertemporal optimization approach to assess the GHG implications of U.S. forest and agricultural biomass electricity expansion," Journal of Forest Economics, Elsevier, vol. 19(4), pages 361-383.
    2. 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.
    3. 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.
    4. Galik, Christopher S. & Abt, Robert C. & Latta, Gregory & Vegh, Tibor, 2015. "The environmental and economic effects of regional bioenergy policy in the southeastern U.S," Energy Policy, Elsevier, vol. 85(C), pages 335-346.
    5. Caurla, Sylvain & Delacote, Philippe & Lecocq, Franck & Barkaoui, Ahmed, 2013. "Stimulating fuelwood consumption through public policies: An assessment of economic and resource impacts based on the French Forest Sector Model," Energy Policy, Elsevier, vol. 63(C), pages 338-347.
    6. Sergent, Arnaud, 2014. "Sector-based political analysis of energy transition: Green shift in the forest policy regime in France," Energy Policy, Elsevier, vol. 73(C), pages 491-500.
    7. Miguel Riviere & Sylvain Caurla, 2020. "Representations of the Forest Sector in Economic Models [Les représentations du secteur forestier dans les modèles économiques]," Post-Print hal-03088084, HAL.
    8. Latta, Gregory S. & Sjølie, Hanne K. & Solberg, Birger, 2013. "A review of recent developments and applications of partial equilibrium models of the forest sector," Journal of Forest Economics, Elsevier, vol. 19(4), pages 350-360.
    9. Lauri, Pekka & Kallio, A. Maarit I. & Schneider, Uwe A., 2012. "Price of CO2 emissions and use of wood in Europe," Forest Policy and Economics, Elsevier, vol. 15(C), pages 123-131.
    10. 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.
    11. Caurla, Sylvain & Bertrand, Vincent & Delacote, Philippe & Le Cadre, Elodie, 2018. "Heat or power: How to increase the use of energy wood at the lowest cost?," Energy Economics, Elsevier, vol. 75(C), pages 85-103.
    12. Jonas Zetterholm & Elina Bryngemark & Johan Ahlström & Patrik Söderholm & Simon Harvey & Elisabeth Wetterlund, 2020. "Economic Evaluation of Large-Scale Biorefinery Deployment: A Framework Integrating Dynamic Biomass Market and Techno-Economic Models," Sustainability, MDPI, vol. 12(17), pages 1-28, September.
    13. 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.
    14. Hurmekoski, Elias & Hetemäki, Lauri, 2013. "Studying the future of the forest sector: Review and implications for long-term outlook studies," Forest Policy and Economics, Elsevier, vol. 34(C), pages 17-29.
    15. G. Cornelis van Kooten, 2016. "California Dreaming: The Economics of Renewable Energy," Working Papers 2016-05, University of Victoria, Department of Economics, Resource Economics and Policy Analysis Research Group.
    16. Guo, Jinggang & Gong, Peichen, 2017. "The potential and cost of increasing forest carbon sequestration in Sweden," Journal of Forest Economics, Elsevier, vol. 29(PB), pages 78-86.
    17. Xian, Hui & Colson, Gregory & Karali, Berna & Wetzstein, Michael, 2017. "Do nonrenewable-energy prices affect renewable-energy volatility? The case of wood pellets," Journal of Forest Economics, Elsevier, vol. 28(C), pages 42-48.
    18. Alice Favero & Robert Mendelsohn, 2013. "Evaluating the Global Role of Woody Biomass as a Mitigation Strategy," Working Papers 2013.37, Fondazione Eni Enrico Mattei.
    19. Rakotoarison, Hanitra & Loisel, Patrice, 2016. "The Faustmann model under storm risk and price uncertainty: A case study of European beech in Northwestern France," MPRA Paper 85114, University Library of Munich, Germany.
    20. Dragicevic, Arnaud & Lobianco, Antonello & Leblois, Antoine, 2016. "Forest planning and productivity-risk trade-off through the Markowitz mean-variance model," Forest Policy and Economics, Elsevier, vol. 64(C), pages 25-34.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:forpol:v:105:y:2019:i:c:p:91-98. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/forpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.