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Damned if you do, damned if you do not--Reduced Climate Impact vs. Sustainable Forests in Sweden

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  • Geijer, Erik
  • Bostedt, Göran
  • Brännlund, Runar

Abstract

The main objective of this paper is to analyze the potential goal conflict between two of Sweden's environmental objectives: Sustainable Forests and Reduced Climate Impact - or, more precisely, the conflict between forest conservation and the supply of wood fuel. To accomplish this, we use a forest sector model that includes the suppliers and major users of roundwood. The econometric results, based on a data set that spans 40 years, show that all the own price elasticities have the expected signs. Among the three forestry products, the supply and (long-term) demand of forest fuel seems to be most sensitive to a price change. In a second step, the estimated model is used to simulate the effect of increased forest conservation - the Sustainable Forest objective - on the supply of wood fuel. If oil is used as a substitute, Swedish emissions of greenhouse gases will increase by almost 0.92 percent, which indicates a clear conflict with the Reduced Climate Impact objective.

Suggested Citation

  • Geijer, Erik & Bostedt, Göran & Brännlund, Runar, 2011. "Damned if you do, damned if you do not--Reduced Climate Impact vs. Sustainable Forests in Sweden," Resource and Energy Economics, Elsevier, vol. 33(1), pages 94-106, January.
    • Handle: RePEc:eee:resene:v:33:y:2011:i:1:p:94-106
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    References listed on IDEAS

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    2. Linden, Mikael & Uusivuori, Jussi, 2002. "Econometric analysis of forest conservation: the Finnish experience," Environment and Development Economics, Cambridge University Press, vol. 7(2), pages 281-297, May.
    3. Brent Sohngen & Robert Mendelsohn & Roger Sedjo, 1999. "Forest Management, Conservation, and Global Timber Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 1-13.
    4. Torjus Bolkesjø & Erik Trømborg & Birger Solberg, 2005. "Increasing Forest Conservation in Norway: Consequences for Timber and Forest Products Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 31(1), pages 95-115, May.
    5. Runar Brannlund & Per-Olov Marklund & Magnus Sjostrom, 2004. "Evaluating market efficiency without price data: the Swedish market for wood fuel," Applied Economics, Taylor & Francis Journals, vol. 36(1), pages 31-39.
    6. Leppanen, Jussi & Linden, Mika & Uusivuori, Jussi & Pajuoja, Heikki, 2005. "The private cost and timber market implications of increasing strict forest conservation in Finland," Forest Policy and Economics, Elsevier, vol. 7(1), pages 71-83, January.
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    Cited by:

    1. Miguel Riviere & Sylvain Caurla & Philippe Delacote, 2020. "Evolving Integrated Models From Narrower Economic Tools : the Example of Forest Sector Models," Post-Print hal-02512330, HAL.
    2. Elofsson, Katarina & Gren, Ing-Marie, 2013. "Should forests be used as uncertain carbon sinks or uncertain fossil fuel substitutes in the EU Roadmap to 2050?," Working Paper Series 2013:8, Swedish University of Agricultural Sciences, Department Economics.
    3. Vass, Miriam Münnich & Elofsson, Katarina, 2016. "Is forest carbon sequestration at the expense of bioenergy and forest products cost-efficient in EU climate policy to 2050?," Journal of Forest Economics, Elsevier, vol. 24(C), pages 82-105.
    4. Brännlund Runar & Carlén Ola & Lundgren Tommy & Marklund Per-Olov, 2012. "The Costs and Benefits of Intensive Forest Management," Journal of Benefit-Cost Analysis, De Gruyter, vol. 3(4), pages 1-25, December.
    5. Geijer, Erik & Andersson, Jon & Bostedt, Göran & Brännlund, Runar & Hjältén, Joakim, 2012. "Is Stump Harvesting a Remedy for the Climate Crisis or a Curse for Biodiversity? An Interdisciplinary Study of Conflicting Goals," CERE Working Papers 2012:5, CERE - the Center for Environmental and Resource Economics.
    6. Ohmura, Tamaki & Creutzburg, Leonard, 2021. "Guarding the For(es)t: Sustainable economy conflicts and stakeholder preference of policy instruments," Forest Policy and Economics, Elsevier, vol. 131(C).
    7. Drupp, Moritz A. & Baumgärtner, Stefan & Meyer, Moritz & Quaas, Martin F. & von Wehrden, Henrik, 2020. "Between Ostrom and Nordhaus: The research landscape of sustainability economics," Ecological Economics, Elsevier, vol. 172(C).
    8. Geijer, Erik & Andersson, Jon & Bostedt, Göran & Brännlund, Runar & Hjältén, Joakim, 2014. "Safeguarding species richness vs. increasing the use of renewable energy—The effect of stump harvesting on two environmental goals," Journal of Forest Economics, Elsevier, vol. 20(2), pages 111-125.
    9. Munnich Vass, Miriam & Elofsson, Katarina, 2013. "Is forest sequestration at the expense of bioenergy and forest products cost-effective in EU climate policy to 2050?," Working Paper Series 2013:9, Swedish University of Agricultural Sciences, Department Economics.
    10. Lundmark, Robert & Olsson, Anna, 2015. "Factor substitution and procurement competition for forest resources in Sweden," International Journal of Production Economics, Elsevier, vol. 169(C), pages 99-109.
    11. Guo, Jinggang & Gong, Peichen, 2019. "Assessing the impacts of rising fuelwood demand on Swedish forest sector: An intertemporal optimization approach," Forest Policy and Economics, Elsevier, vol. 105(C), pages 91-98.
    12. Jonas Zetterholm & Elina Bryngemark & Johan Ahlström & Patrik Söderholm & Simon Harvey & Elisabeth Wetterlund, 2020. "Economic Evaluation of Large-Scale Biorefinery Deployment: A Framework Integrating Dynamic Biomass Market and Techno-Economic Models," Sustainability, MDPI, vol. 12(17), pages 1-28, September.

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