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Substitution Possibility between Unpriced Pulp and Wastepaper in the U.S. Paper and Paperboard Industry

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  • Myunghun Lee
  • Hwan-Ok Ma

Abstract

A greater use of recycled wastepaper would preserve virgin forests as well as reducing the amount of wastepaper going to landfills. These environmental goals depend critically on the elasticity of substitution between pulp and wastepaper in producing paper and paperboard. Since most of the pulp consumed by U.S. paper mills and paperboard mills is transferred internally from vertically integrated pulp mills, the price data on pulp is not available. This paper constructs an econometric model which enables us to estimate the substitution possibility between unpriced pulp and wastepaper in the U.S. paper and paperboard industry. Empirical results show that the elasticity of substitution between unpriced pulp and wastepaper is positive, but not statistically significant. Copyright Kluwer Academic Publishers 2001

Suggested Citation

  • Myunghun Lee & Hwan-Ok Ma, 2001. "Substitution Possibility between Unpriced Pulp and Wastepaper in the U.S. Paper and Paperboard Industry," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 18(3), pages 251-273, March.
    • Handle: RePEc:kap:enreec:v:18:y:2001:i:3:p:251-273
    DOI: 10.1023/A:1011111732108
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    Cited by:

    1. Lee, Myunghun & Jin, Yingmei, 2012. "The substitutability of nuclear capital for thermal capital and the shadow price in the Korean electric power industry," Energy Policy, Elsevier, vol. 51(C), pages 834-841.
    2. Berglund, Christer & Soderholm, Patrik, 2003. "Complementing Empirical Evidence on Global Recycling and Trade of Waste Paper," World Development, Elsevier, vol. 31(4), pages 743-754, April.
    3. Mansikkasalo, Anna & Lundmark, Robert & Söderholm, Patrik, 2014. "Market behavior and policy in the recycled paper industry: A critical survey of price elasticity research," Forest Policy and Economics, Elsevier, vol. 38(C), pages 17-29.
    4. Lee, Myunghun, 2008. "Environmental regulation and production structure for the Korean iron and steel industry," Resource and Energy Economics, Elsevier, vol. 30(1), pages 1-11, January.
    5. Lee, Myunghun, 2013. "The effects of an increase in power rate on energy demand and output price in Korean manufacturing sectors," Energy Policy, Elsevier, vol. 63(C), pages 1217-1223.

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