IDEAS home Printed from https://ideas.repec.org/p/ags/iaae15/211374.html
   My bibliography  Save this paper

Green public procurement of certified wood: The impact on global welfare and welfare calculation itself

Author

Listed:
  • Brusselaers, Jan
  • Buysse, Jeroen
  • Huylenbroeck, Guido

Abstract

This paper investigates the impact of green public procurement (governments’ purchases) of certified wood in the EU. A spatial price equilibrium model is developed to analyse whether this policy impacts the interregional trade flows of wood and other regions’ economic welfare. The model contains an innovative feature which allows the introduction of consumers’ willingness to pay for certified wood, and producers’ willingness to accept certified wood production. The outcome of the analysis demonstrates that green public procurement of certified wood in one region can create a trade barrier for other regions and decrease their economic welfare. In the worst case scenario, the forced increase of demand for certified wood increases the prices of certified wood. This decreases the relative price of conventional wood which can trigger the production of conventional wood and endanger forest conservation. Cost reductions and adequate financial compensation for certified wood producers can tackle these problems.

Suggested Citation

  • Brusselaers, Jan & Buysse, Jeroen & Huylenbroeck, Guido, 2015. "Green public procurement of certified wood: The impact on global welfare and welfare calculation itself," 2015 Conference, August 9-14, 2015, Milan, Italy 211374, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae15:211374
    DOI: 10.22004/ag.econ.211374
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/211374/files/Brusselaers-Green%20Public%20Procurement%20of%20Certified%20Wood-1082.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.211374?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
    ---><---

    References listed on IDEAS

    as
    1. Jette Jacobsen & Nick Hanley, 2009. "Are There Income Effects on Global Willingness to Pay for Biodiversity Conservation?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(2), pages 137-160, June.
    2. Paulo A.L.D. Nunes & Jeroen C.J.M. van den Bergh, 2003. "The Ecological Economics of Biodiversity," Books, Edward Elgar Publishing, number 2993.
    3. Parikka-Alhola, Katriina, 2008. "Promoting environmentally sound furniture by green public procurement," Ecological Economics, Elsevier, vol. 68(1-2), pages 472-485, December.
    4. Brent Sohngen & Robert Mendelsohn & Roger Sedjo, 1999. "Forest Management, Conservation, and Global Timber Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 1-13.
    5. Gan, Jianbang & McCarl, Bruce A., 2007. "Measuring transnational leakage of forest conservation," Ecological Economics, Elsevier, vol. 64(2), pages 423-432, December.
    6. Dauvergne, Peter, 2013. "Eco-Business: A Big-Brand Takeover of Sustainability," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262018760, December.
    7. Cai, Zhen & Aguilar, Francisco X., 2013. "Meta-analysis of consumer's willingness-to-pay premiums for certified wood products," Journal of Forest Economics, Elsevier, vol. 19(1), pages 15-31.
    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. Brusselaers, Jan & Van Huylenbroeck, Guido & Buysse, Jeroen, 2017. "Green Public Procurement of Certified Wood: Spatial Leverage Effect and Welfare Implications," Ecological Economics, Elsevier, vol. 135(C), pages 91-102.
    2. De Valck, Jeremy & Vlaeminck, Pieter & Liekens, Inge & Aertsens, Joris & Chen, Wendy & Vranken, Liesbet, 2012. "The sources of preference heterogeneity for nature restoration scenarios," Working Papers 146522, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    3. Czajkowski, Mikolaj & Buszko-Briggs, Malgorzata & Hanley, Nick, 2009. "Valuing changes in forest biodiversity," Ecological Economics, Elsevier, vol. 68(12), pages 2910-2917, October.
    4. Brusselaers, Jan & Buysse, Jeroen, 2021. "Legality requirements for wood import in the EU: Who wins, who loses?," Forest Policy and Economics, Elsevier, vol. 123(C).
    5. Acosta, Montserrat & Sohngen, Brent, 2009. "How big is leakage from forestry carbon credits? Estimates from a Global Model," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49468, Agricultural and Applied Economics Association.
    6. Cai, Zhen & Xie, Yi & Aguilar, Francisco X., 2017. "Eco-label credibility and retailer effects on green product purchasing intentions," Forest Policy and Economics, Elsevier, vol. 80(C), pages 200-208.
    7. Alexander Pfaff & Juan Robalino, 2017. "Spillovers from Conservation Programs," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 299-315, October.
    8. Baker, J.S. & Wade, C.M. & Sohngen, B.L. & Ohrel, S. & Fawcett, A.A., 2019. "Potential complementarity between forest carbon sequestration incentives and biomass energy expansion," Energy Policy, Elsevier, vol. 126(C), pages 391-401.
    9. Verbic, Miroslav & Slabe-Erker, Renata, 2009. "An econometric analysis of willingness-to-pay for sustainable development: A case study of the Volcji Potok landscape area," Ecological Economics, Elsevier, vol. 68(5), pages 1316-1328, March.
    10. Meya, Jasper N. & Drupp, Moritz A. & Hanley, Nick, 2021. "Testing structural benefit transfer: The role of income inequality," Resource and Energy Economics, Elsevier, vol. 64(C).
    11. Caparros, Alejandro & Cerda, Emilio & Ovando, P. & Campos, Pablo, 2007. "Carbon Sequestration with Reforestations and Biodiversity-Scenic Values," Climate Change Modelling and Policy Working Papers 9323, Fondazione Eni Enrico Mattei (FEEM).
    12. Sohngen, Brent & Mendelsohn, Robert & Sedjo, Roger A., 2001. "A Global Model Of Climate Change Impacts On Timber Markets," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(2), pages 1-18, December.
    13. Pelša Inese, 2019. "Green Public Procurement: Case Study of Latvian Municipalities," Economics and Business, Sciendo, vol. 33(1), pages 207-221, January.
    14. Wesley R. Brooks & Stephen C. Newbold, 2013. "Ecosystem damages in integrated assessment models of climate change," NCEE Working Paper Series 201302, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Mar 2013.
    15. Monge, Juan J. & Bryant, Henry L. & Gan, Jianbang & Richardson, James W., 2016. "Land use and general equilibrium implications of a forest-based carbon sequestration policy in the United States," Ecological Economics, Elsevier, vol. 127(C), pages 102-120.
    16. Turpie, J.K. & Marais, C. & Blignaut, J.N., 2008. "The working for water programme: Evolution of a payments for ecosystem services mechanism that addresses both poverty and ecosystem service delivery in South Africa," Ecological Economics, Elsevier, vol. 65(4), pages 788-798, May.
    17. Ghisetti, Claudia, 2017. "Demand-pull and environmental innovations: Estimating the effects of innovative public procurement," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 178-187.
    18. Ionela Corina Chersan & Valentin Florentin Dumitru & Cãtãlina Gorgan & Vasile Gorgan, 2020. "Green Public Procurement in the Academic Literature," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 22(53), pages 1-82, February.
    19. Annette Brunsmeier & Markus Groth, 2015. "Hidden climate change related risks for the private sector," Working Paper Series in Economics 333, University of Lüneburg, Institute of Economics.
    20. May Arunanondchai, 2016. "Trade Policy and the Welfare of Southeast-Asian Timber Exporters: Some Implications for Forest Resources," EEPSEA Research Report rr2016056, Economy and Environment Program for Southeast Asia (EEPSEA), revised Apr 2016.

    More about this item

    Keywords

    Environmental Economics and Policy; International Development;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:ags:iaae15:211374. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/iaaeeea.html .

    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.