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The future operating environment of the Finnish sawmill industry in an era of climate change mitigation policies

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  • Packalen, Tuula
  • Kärkkäinen, Leena
  • Toppinen, Anne

Abstract

Sawnwood and its further-processed products play an important role in the mitigation of climate change; sawnwood, as well as its by-products from production processes, such as raw material (bark, chips, dust) for energy products (e.g. pellets, heating power), can substitute for other raw materials with higher carbon footprints. In this study, we integrate various foresight methods in analysing the future of the sawmilling industry in Finland. According to the results, climate change mitigation policies impact firstly through increasing energy costs and secondly through emerging energy products. The greatest uncertainties are related to the price of energy and the competitive situation of wood as a potential source of energy, both regulated heavily by EU- and national-level policies. In addition, the future development of biorefineries was regarded as a potential driver of change: the increasing demand for pulpwood would increase competition for the raw materials. From a managerial perspective, the Finnish sawmilling industry should thus consider adoption of new business models for joint production of wood, chips, and energy for heat and power. For the policymakers our study illustrates how important it is to take into account the causal effects on profitability determinants when designing policy measures.

Suggested Citation

  • Packalen, Tuula & Kärkkäinen, Leena & Toppinen, Anne, 2017. "The future operating environment of the Finnish sawmill industry in an era of climate change mitigation policies," Forest Policy and Economics, Elsevier, vol. 82(C), pages 30-40.
    • Handle: RePEc:eee:forpol:v:82:y:2017:i:c:p:30-40
    DOI: 10.1016/j.forpol.2016.09.017
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    Cited by:

    1. Heiskanen, Aleksi & Hurmekoski, Elias & Toppinen, Anne & Näyhä, Annukka, 2022. "Exploring the unknowns – State of the art in qualitative forest-based sector foresight research," Forest Policy and Economics, Elsevier, vol. 135(C).
    2. Toivonen, Ritva & Lilja, Anna & Vihemäki, Heini & Toppinen, Anne, 2021. "Future export markets of industrial wood construction – A qualitative backcasting study," Forest Policy and Economics, Elsevier, vol. 128(C).
    3. Kunttu, Janni & Hurmekoski, Elias & Heräjärvi, Henrik & Hujala, Teppo & Leskinen, Pekka, 2020. "Preferable utilisation patterns of wood product industries' by-products in Finland," Forest Policy and Economics, Elsevier, vol. 110(C).
    4. Kärkkäinen, Leena & Haakana, Helena & Hirvelä, Hannu & Packalen, Tuula, 2019. "Using a decision support system to study impacts of land use policies on wood procurement possibilities of the sawmill industry – A case study at regional and municipal levels," Forest Policy and Economics, Elsevier, vol. 103(C), pages 136-146.
    5. Janni Kunttu & Venla Wallius & Martti Kulvik & Pekka Leskinen & Jussi Lintunen & Timokleia Orfanidou & Diana Tuomasjukka, 2022. "Exploring 2040: Global Trends and International Policies Setting Frames for the Finnish Wood-Based Economy," Sustainability, MDPI, vol. 14(16), pages 1-20, August.
    6. Elizângela Silva Luz & Álvaro Augusto Vieira Soares & Selma Lopes Goulart & Amélia Guimarães Carvalho & Thiago Campos Monteiro & Thiago Paula Protásio, 2021. "Challenges of the lumber production in the Amazon region: relation between sustainability of sawmills, process yield and logs quality," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(4), pages 4924-4948, April.
    7. Vauhkonen, Jari & Packalen, Tuula, 2018. "Uncertainties related to climate change and forest management with implications on climate regulation in Finland," Ecosystem Services, Elsevier, vol. 33(PB), pages 213-224.

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