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The demand for paper and paperboard: econometric models for the European Union

Author

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  • M. L. Chas-Amil
  • J. Buongiorno

Abstract

Cost minimization theory suggests national demand equations for paper and paperboard in which demand is a negative function of the price of paper and paperboard, and a positive function of gross national product. A dynamic version of this model was estimated with data from European Union countries, for newsprint, printing and writing paper, and other paper and paperboard. Country-by-country equations proved unstable. Pooling the data across countries, with dummy variables to account for fixed country effects, led to well defined short-term and long-term elasticities with respect to price and gross national product. The hypothesis that income and price elasticities were the same across the European Union countries could not be rejected at the 1% significance level, for the three product groups. From 1969 to 1995, most of the growth in demand had been due to the growth in national product, while price increases had only a small negative effect.

Suggested Citation

  • M. L. Chas-Amil & J. Buongiorno, 2000. "The demand for paper and paperboard: econometric models for the European Union," Applied Economics, Taylor & Francis Journals, vol. 32(8), pages 987-999.
  • Handle: RePEc:taf:applec:v:32:y:2000:i:8:p:987-999
    DOI: 10.1080/000368400322048
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    Cited by:

    1. Michinaka, Tetsuya & Tachibana, Satoshi & Turner, James A., 2011. "Estimating price and income elasticities of demand for forest products: Cluster analysis used as a tool in grouping," Forest Policy and Economics, Elsevier, vol. 13(6), pages 435-445, July.
    2. Bolkesj√ł, Torjus Folsland & Solberg, Birger & Wangen, Knut Reidar, 2007. "Heterogeneity in nonindustrial private roundwood supply: Lessons from a large panel of forest owners," Journal of Forest Economics, Elsevier, vol. 13(1), pages 7-28, May.
    3. Andres, Luis & Zentner, Alejandro & Zentner, Joaquin, 2014. "Measuring the effect of internet adoption on paper consumption," Policy Research Working Paper Series 6965, The World Bank.
    4. Cameron Hepburn & John Quah & Robert Ritz, 2006. "Emissions Trading and Profit-Neutral Grandfathering," Economics Series Working Papers 295, University of Oxford, Department of Economics.
    5. Li, Haizheng & Luo, Jifeng, 2008. "Industry consolidation and price in the US linerboard industry," Journal of Forest Economics, Elsevier, vol. 14(2), pages 93-115, April.
    6. Lauri, Pekka & Kallio, A. Maarit I. & Schneider, Uwe A., 2012. "Price of CO2 emissions and use of wood in Europe," Forest Policy and Economics, Elsevier, vol. 15(C), pages 123-131.
    7. McCarthy, Patrick & Lei Lei, 2010. "Regional demands for pulp and paper products," Journal of Forest Economics, Elsevier, vol. 16(2), pages 127-144, April.
    8. Meleo, Linda, 2014. "On the determinants of industrial competitiveness: The European Union emission trading scheme and the Italian paper industry," Energy Policy, Elsevier, vol. 74(C), pages 535-546.
    9. Li, Haizheng & LUO, Jifeng & MCCARTHY, Patrick, 2006. "Economic transition and demand pattern: Evidence from China's paper and paperboard industry," China Economic Review, Elsevier, vol. 17(3), pages 321-336.
    10. Maarit Kallio & Markku Kallio, 2002. "Nonparametric Methods for Evaluating Economic Efficiency and Imperfect Competition," Journal of Productivity Analysis, Springer, vol. 18(2), pages 171-189, September.
    11. Raghbendra Jha & U.N. Bhati, 2007. "Economic Determinants of Newsprint Consumption in India: A Time Series Analysis," ASARC Working Papers 2007-10, The Australian National University, Australia South Asia Research Centre.

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