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Damned if you do, Damned if you don't – Reduced Climate Impact vs. Sustainable Forests in Sweden

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Author Info

  • Geijer, Erik

    ()
    (Dept of Forest Economics)

  • Bostedt, Göran

    ()
    (Dept of Forest Economics)

  • Brännlund, Runar

    ()
    (Department of Economics, Umeå University)

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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

    Paper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number 794.

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    Length: 27 pages
    Date of creation: 27 Nov 2009
    Date of revision:
    Handle: RePEc:hhs:umnees:0794

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    Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
    Phone: 090 - 786 61 42
    Fax: 090 - 77 23 02
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    Web page: http://www.econ.umu.se/
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    Keywords: Goal conflict; Wood fuels; Forest sector model; Roundwood markets; Forest conservation;

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