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Economic impacts of setting reference levels for the forest carbon sinks in the EU on the European forest sector

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  • Kallio, A. Maarit I.
  • Solberg, Birger
  • Käär, Liisa
  • Päivinen, Risto

Abstract

In order to meet the requirements of the Paris climate agreement, the EU plans to set new goals for forest carbon sinks. This may affect the future development potential in the wood using sectors in Europe and their contribution in the new circular bio-economy. We explore the potential consequences mainly on the forest sector in the region consisting of EU and Norway (EU + N), but also globally, that would arise if the countries in the EU + N constrained economic utilization of their forest resources. For the analysis, we use the global forest sector model EFI-GTM, which also incorporates the trade in wood and wood products.

Suggested Citation

  • Kallio, A. Maarit I. & Solberg, Birger & Käär, Liisa & Päivinen, Risto, 2018. "Economic impacts of setting reference levels for the forest carbon sinks in the EU on the European forest sector," Forest Policy and Economics, Elsevier, vol. 92(C), pages 193-201.
    • Handle: RePEc:eee:forpol:v:92:y:2018:i:c:p:193-201
    DOI: 10.1016/j.forpol.2018.04.010
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    References listed on IDEAS

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    Cited by:

    1. Solberg, Birger & Moiseyev, Alex & Hansen, Jon Øvrum & Horn, Svein Jarle & Øverland, Margareth, 2021. "Wood for food: Economic impacts of sustainable use of forest biomass for salmon feed production in Norway," Forest Policy and Economics, Elsevier, vol. 122(C).
    2. Päivinen, Risto & Kallio, A. Maarit I. & Solberg, Birger & Käär, Liisa, 2022. "EU Forest reference levels: The compatible harvest volumes compiled and assessed in terms of forest sector market development," Forest Policy and Economics, Elsevier, vol. 140(C).
    3. Erik Gawel & Nadine Pannicke & Nina Hagemann, 2019. "A Path Transition Towards a Bioeconomy—The Crucial Role of Sustainability," Sustainability, MDPI, vol. 11(11), pages 1-23, May.
    4. Pan, Wenqi & Kim, Man-Keun & Ning, Zhuo & Yang, Hongqiang, 2020. "Carbon leakage in energy/forest sectors and climate policy implications using meta-analysis," Forest Policy and Economics, Elsevier, vol. 115(C).
    5. Filewod, Ben & McCarney, Geoff, 2023. "Avoiding leakage from nature-based offsets by design," LSE Research Online Documents on Economics 117927, London School of Economics and Political Science, LSE Library.
    6. Xinxin Liao & Zhuo Ning, 2022. "Welfare Implications of Border Carbon Adjustments on the Trade of Harvested Wood Products," IJERPH, MDPI, vol. 20(1), pages 1-16, December.
    7. Miguel Riviere & Sylvain Caurla, 2020. "Representations of the Forest Sector in Economic Models [Les représentations du secteur forestier dans les modèles économiques]," Post-Print hal-03088084, HAL.
    8. Szajkó, Gabriella & Rácz, Viktor József & Kis, András, 2024. "The role of price incentives in enhancing carbon sequestration in the forestry sector of Hungary," Forest Policy and Economics, Elsevier, vol. 158(C).
    9. Yunduan Gao, 2023. "Mechanisms of Forestry Carbon Sink Policies on Land Use Efficiency: A Perspective from the Drivers of Policy Implementation," Land, MDPI, vol. 12(10), pages 1-19, September.
    10. Zhang, Qian & Wang, Rong & Tang, Decai & Boamah, Valentina, 2023. "The role and transmission mechanism of forest resource abundance on low-carbon economic development in the Yangtze River Delta region: Insights from the COP26 targets," Resources Policy, Elsevier, vol. 85(PA).
    11. Hongge Zhu & Yingli Cai & Hong Lin & Yuchen Tian, 2022. "Impacts of Cross-Sectoral Climate Policy on Forest Carbon Sinks and Their Spatial Spillover: Evidence from Chinese Provincial Panel Data," IJERPH, MDPI, vol. 19(21), pages 1-21, November.
    12. Jonsson, Ragnar & Rinaldi, Francesca & Pilli, Roberto & Fiorese, Giulia & Hurmekoski, Elias & Cazzaniga, Noemi & Robert, Nicolas & Camia, Andrea, 2021. "Boosting the EU forest-based bioeconomy: Market, climate, and employment impacts," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    13. Huiying Ye & Qi Zhang & Xunzhang Pan & Arash Farnoosh, 2020. "Market-induced carbon leakage in China’s certified emission reduction projects," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(6), pages 987-1012, August.
    14. Filewod, Ben & McCarney, Geoff, 2023. "Avoiding leakage from nature-based offsets by design," LSE Research Online Documents on Economics 117928, London School of Economics and Political Science, LSE Library.
    15. Zhao, Na & Wang, Keqing & Yuan, Yongna, 2023. "Toward the carbon neutrality: Forest carbon sinks and its spatial spillover effect in China," Ecological Economics, Elsevier, vol. 209(C).
    16. Pan, Wenqi & Chang, Wei-Yew & Wu, Ting & Zhang, Han & Ning, Zhuo & Yang, Hongqiang, 2021. "Impacts of the China-US trade restrictions on the global forest sector: A bilateral trade flow analysis," Forest Policy and Economics, Elsevier, vol. 123(C).
    17. G. Venkatesh, 2022. "Circular Bio-economy—Paradigm for the Future: Systematic Review of Scientific Journal Publications from 2015 to 2021," Circular Economy and Sustainability, Springer, vol. 2(1), pages 231-279, March.

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