Damned if you do, Damned if you don't – Reduced Climate Impact vs. Sustainable Forests in Sweden
AbstractThe 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 InfoPaper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number 794.
Length: 27 pages
Date of creation: 27 Nov 2009
Date of revision:
Contact details of provider:
Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
Phone: 090 - 786 61 42
Fax: 090 - 77 23 02
Web page: http://www.econ.umu.se/
More information through EDIRC
Goal conflict; Wood fuels; Forest sector model; Roundwood markets; Forest conservation;
Find related papers by JEL classification:
- C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
- L73 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Forest Products
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-AGR-2009-12-11 (Agricultural Economics)
- NEP-ALL-2009-12-11 (All new papers)
- NEP-ENE-2009-12-11 (Energy Economics)
- NEP-ENV-2009-12-11 (Environmental Economics)
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