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Analyzing European Union wood pellet's import demand through the application of the almost ideal demand system and Rotterdam model

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  • Atasoy, Filiz Guneysu
  • Zhang, Daowei

Abstract

In this paper, we examine the wood pellet import demand of European Union (EU) using Almost Ideal Demand System (AIDS) and Rotterdam Model and data from 2007 to 2021. Our results show that the Conditional Hicksian, Marshallian own price elasticities and cross price elasticities as well as expenditure elasticities are inelastic, and that the cross-price elasticities were positive, implying that wood pellets from the U.S. and other countries are net substitutes. Further, our estimated expenditure elasticities reveal that wood pellets from the U.S. and Canada have the most gain from an expansion in the EU wood pellet market. The EU imports of wood pellets from the U.S. have been increasing, proportionally reducing imports from elsewhere.

Suggested Citation

  • Atasoy, Filiz Guneysu & Zhang, Daowei, 2025. "Analyzing European Union wood pellet's import demand through the application of the almost ideal demand system and Rotterdam model," Renewable Energy, Elsevier, vol. 241(C).
    • Handle: RePEc:eee:renene:v:241:y:2025:i:c:s0960148124023681
    DOI: 10.1016/j.renene.2024.122300
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