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Damned if you do, damned if you do not--Reduced Climate Impact vs. Sustainable Forests in Sweden

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  • Geijer, Erik
  • Bostedt, Göran
  • Brännlund, Runar
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    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.

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    Bibliographic Info

    Article provided by Elsevier in its journal Resource and Energy Economics.

    Volume (Year): 33 (2011)
    Issue (Month): 1 (January)
    Pages: 94-106

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    Handle: RePEc:eee:resene:v:33:y:2011:i:1:p:94-106

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    Web page: http://www.elsevier.com/locate/inca/505569

    Related research

    Keywords: Goal conflict Wood fuels Forest sector model Roundwood markets Forest conservation;

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    Cited by:
    1. Elofsson, Katarina & Gren, Ing-Marie, 2013. "Should forests be used as uncertain carbon sinks or uncertain fossil fuel substitutes in the EU Roadmap to 2050?," Working Paper Series 2013:8, Department Economics, Swedish University of Agricultural Sciences.
    2. Munnich Vass, Miriam & Elofsson, Katarina, 2013. "Is forest sequestration at the expense of bioenergy and forest products cost-effective in EU climate policy to 2050?," Working Paper Series 2013:9, Department Economics, Swedish University of Agricultural Sciences.

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