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The Relationship between Waste Paper and Other Inputs in the Swedish Paper Industry

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Author Info
Eva Samakovlis ()
Abstract

A number of life-cycle assessment studies havecompared the environmental impacts of materialrecycling and incineration of waste paper. Theyhave shown that, in most cases, a recyclingscenario results in lower total energy use, butgreater use of fossil fuels. If waste paper andfossil fuels are complements, parts of theenvironmental argument for recycling isabolished. This paper estimates a cost functionfor the Swedish paper industry. If the costshares are co-integrated, an error correctionmodel will be used to model the dynamics.Short- and long-run elasticities are thencalculated to address the relationship betweenwaste paper and the other inputs: capital,labor, purchased pulp, fiber, fossil fuels andelectricity. Contrary to the life-cycleassessment studies, the results show that wastepaper and fossil fuels are substitutes, andthat waste paper and electricity arecomplements. Copyright Kluwer Academic Publishers 2003

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File URL: http://hdl.handle.net/10.1023/A:1023946326838
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Publisher Info
Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 25 (2003)
Issue (Month): 2 (June)
Pages: 191-212
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Handle: RePEc:kap:enreec:v:25:y:2003:i:2:p:191-212

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Web page: http://www.springerlink.com/link.asp?id=100263

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Related research
Keywords: cost function; input substitution; paper production; waste paper;

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  2. Brannlund, Runar & Lofgren, Karl-Gustaf, 1995. "Cyclical Dumping and Correlated Business Cycles in Imperfect Markets: Empirical Applications to the Canadian Pulp and Paper Industry," Applied Economics, Taylor and Francis Journals, vol. 27(11), pages 1081-91, November.
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  7. Urga, Giovanni, 1999. "An application of dynamic specifications of factor demand equations to interfuel substitution in US industrial energy demand," Economic Modelling, Elsevier, vol. 16(4), pages 503-513, December. [Downloadable!] (restricted)
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