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

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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. Cela, Enian & Kaneko, Shinji, 2011. "Determining the effectiveness of the Danish packaging tax policy: The case of paper and paperboard packaging imports," Resources, Conservation & Recycling, Elsevier, vol. 55(9), pages 836-841.
    2. Bolkesjø, 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. Raghbendra Jha & U. N. Bhati, 2008. "Economic Determinants of Newsprint Consumption in India: A Time Series Analysis," Palgrave Macmillan Books, in: Raghbendra Jha (ed.), The Indian Economy Sixty Years After Independence, chapter 17, pages 288-298, Palgrave Macmillan.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. Paul Rougieux & Ragnar Jonsson, 2021. "Impacts of the FLEGT Action Plan and the EU Timber Regulation on EU Trade in Timber Product," Sustainability, MDPI, vol. 13(11), pages 1-26, May.
    9. Umanath Malaiarasan & R. Paramasivam & K. Thomas Felix & S. J. Balaji, 2020. "Simultaneous equation model for Indian sugar sector," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 22(1), pages 113-141, June.
    10. 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.
    11. Buongiorno, Joseph, 2019. "Country-specific demand elasticities for forest products: Estimation method and consequences for long term projections," Forest Policy and Economics, Elsevier, vol. 106(C), pages 1-1.
    12. Daigneault, Adam & Johnston, Craig & Korosuo, Anu & Baker, Justin S. & Forsell, Nicklas & Prestemon, Jeffrey P. & Abt, Robert C., 2019. "Developing Detailed Shared Socioeconomic Pathway (SSP) Narratives for the Global Forest Sector," Journal of Forest Economics, now publishers, vol. 34(1-2), pages 7-45, August.
    13. Cameron Hepburn & John Quah & Robert Ritz, 2006. "Emissions Trading and Profit-Neutral Grandfathering," Economics Series Working Papers 295, University of Oxford, Department of Economics.
    14. 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.
    15. McCarthy, Patrick & Lei Lei, 2010. "Regional demands for pulp and paper products," Journal of Forest Economics, Elsevier, vol. 16(2), pages 127-144, April.
    16. 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.
    17. Zhang, Chao & Chen, Jining & Wen, Zongguo, 2012. "Alternative policy assessment for water pollution control in China's pulp and paper industry," Resources, Conservation & Recycling, Elsevier, vol. 66(C), pages 15-26.

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