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Modelling the Competition for Forest Resources: The Case of Sweden

Received: 8 April 2014     Accepted: 7 May 2014     Published: 20 May 2014
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Abstract

Past decades increasing shares of forest resources have been diverted from the forest sector to the energy sector. The increasing utilization of forest fuel is, to a large extent, caused by economic policies introduced to reduce the emission of greenhouse gases. Since the energy sector is believed to continue to increase its use of forest fuel in the energy production in Sweden, it is of interest to investigate the effects of this. The purpose of this study is to analyses the extent and degree of forest resources competition in the presence of climate policy by accounting for the inter-linkages of forest resources utilization between the energy sector and the forest industries. A partial equilibrium model was thus constructed and applied to the Swedish forest sector and energy sector. A baseline scenario is calibrated using the GAMS software. Four scenarios with alternative development paths are then simulated and compared to the baseline scenario. The results indicate that the impacts on the procurement competition between the forest sector and the energy sector are relatively moderate also in situations of expanding production in the forest industries. An increase in the competition between industries in the energy sector can however be observed.

Published in Journal of Energy and Natural Resources (Volume 3, Issue 2)
DOI 10.11648/j.jenr.20140302.11
Page(s) 11-19
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2014. Published by Science Publishing Group

Keywords

Partial Equilibrium Model, Forestry, Forest Industries, Energy Sector, Bioenergy, Forest Fuel

References
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[2] Bolkesjo T.F., E. Trømberg and B. Solberg. (2006). Bioenergy from the forest sector: Economic potential and interactions with tim-ber and forest products markets in Norway. Scandinavian Journal of Forest Research, 21(2): 175-185.
[3] Buongiorno, J., S. Zhu, D. Zhang J. Turner and D. Tomberlin. (2003). The global forest products model: Structure, estimation and applications. Academic Press, Elsevier Sci., New York, USA.
[4] Brännlund, R., R. Lundmark and P. Söderholm. (2010). Kampen om skogen – Koka, såga, bränna eller bevara? SNS Förlag, Stockholm, Sweden.
[5] Böhringer, C., T.F. Ru-therford and W. Wiegard. (2003). Computable general equilibrium analysis: Opening a black box. ZEW Discussion Paper 03-56, Mannheim, Germany.
[6] European Union (EU). (2009). Direc-tive 2009/28/EC of the European Parliament and Council. Official Journal of the European Union, 140:16-62.
[7] FAO – Food and agriculture organization of the United Nation. (2010). FAOSTAT Forestry (www.fao.org)
[8] Hammarlund, C., K. Ericsson, H. Johansson, R. Lundmark, A. Olsson, E. Pavlovskaia and F. Wilhelmsson. (2010). Bränsle för ett bättre klimat. Rapport 2010:5, AgriFood. Lund, Sweden.
[9] Haynes, R.W. (1993). Forestry sector analysis for developing countries: Issues and methods. PNW-GTR-314. USDA, Forestry Service, Pacific Northwest Re-search Station, Portland, USA.
[10] Kallio, M., D.P. Dykstra and C.S. Binkley.(1987). The global forest sector: An analytical perspective. Wiley, New York, USA.
[11] Kallio, M., A. Moiseyev, and B. Solberg, (2004). The global forest sector model EFI-GTM – The model structure. Internal report No.15. European Forest Institute, Finland.
[12] Lundmark, R.(2007). Dependencies between forest products sectors: a partial equilibrium analysis. Forest Products Journal, vol. 57(9): 79-86.
[13] Lundmark, R and P. Söderholm. (2004). Brännhett om svensk skog. SNS Förlag, Stockholm, Sweden.
[14] Olsson, A. and R. Lundmark.(2011). Factor substitution and pro-curement competition for forest resources in Sweden. Economics Unit, Luleå University of Tech-nology.
[15] Mansikkasalo, A. (2007). The European forest trade model – EU policy and the impact on forest raw material use. Licentiate Thesis Economics Unit, Luleå University of Technol-ogy.
[16] SDC. (2009). Skogsindustrins virkesförbrukning samt produktion av skogsprodukter 2004-2008. Uppsala, Sweden.
[17] SLU. (2004). SLU:s bioenergiutredning. The Swedish Uni-versity of Agricultural Sciences, Uppsala, Sweden.
[18] Statistics Sweden. (2008). Energy pric-es and electricity suppliers switching, 4th Quarter 2007. EN 24 SM 0801, Örebro, Swe-den.
[19] Statistics Sweden .(2009). Electricity supply, district heating and supply of natural and gasworks gas 2007. EN 11 SM 0901, Örebro, Sweden.
[20] Swedish Forest Agency.(2009). Swedish Statistical Yearbook of Forestry 2009. Jönköping, Sweden.
[21] Toppinen, A. and J. Kuuluvainen.(1997). Structural changes in sawlog and pulpwood markets in Finland. Scandinavian Journal of Forest Research, 12(4): 382-389.
[22] Trømberg E. and B. Solberg. (2010). Forest sector impacts of the increased use of wood in energy production in Norway. Forest Policy and Economics, 12(1):39-47.
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    Anna Olsson, Robert Lundmark. (2014). Modelling the Competition for Forest Resources: The Case of Sweden. Journal of Energy and Natural Resources, 3(2), 11-19. https://doi.org/10.11648/j.jenr.20140302.11

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    ACS Style

    Anna Olsson; Robert Lundmark. Modelling the Competition for Forest Resources: The Case of Sweden. J. Energy Nat. Resour. 2014, 3(2), 11-19. doi: 10.11648/j.jenr.20140302.11

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    AMA Style

    Anna Olsson, Robert Lundmark. Modelling the Competition for Forest Resources: The Case of Sweden. J Energy Nat Resour. 2014;3(2):11-19. doi: 10.11648/j.jenr.20140302.11

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  • @article{10.11648/j.jenr.20140302.11,
      author = {Anna Olsson and Robert Lundmark},
      title = {Modelling the Competition for Forest Resources: The Case of Sweden},
      journal = {Journal of Energy and Natural Resources},
      volume = {3},
      number = {2},
      pages = {11-19},
      doi = {10.11648/j.jenr.20140302.11},
      url = {https://doi.org/10.11648/j.jenr.20140302.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jenr.20140302.11},
      abstract = {Past decades increasing shares of forest resources have been diverted from the forest sector to the energy sector. The increasing utilization of forest fuel is, to a large extent, caused by economic policies introduced to reduce the emission of greenhouse gases. Since the energy sector is believed to continue to increase its use of forest fuel in the energy production in Sweden, it is of interest to investigate the effects of this. The purpose of this study is to analyses the extent and degree of forest resources competition in the presence of climate policy by accounting for the inter-linkages of forest resources utilization between the energy sector and the forest industries. A partial equilibrium model was thus constructed and applied to the Swedish forest sector and energy sector. A baseline scenario is calibrated using the GAMS software. Four scenarios with alternative development paths are then simulated and compared to the baseline scenario. The results indicate that the impacts on the procurement competition between the forest sector and the energy sector are relatively moderate also in situations of expanding production in the forest industries. An increase in the competition between industries in the energy sector can however be observed.},
     year = {2014}
    }
    

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  • TY  - JOUR
    T1  - Modelling the Competition for Forest Resources: The Case of Sweden
    AU  - Anna Olsson
    AU  - Robert Lundmark
    Y1  - 2014/05/20
    PY  - 2014
    N1  - https://doi.org/10.11648/j.jenr.20140302.11
    DO  - 10.11648/j.jenr.20140302.11
    T2  - Journal of Energy and Natural Resources
    JF  - Journal of Energy and Natural Resources
    JO  - Journal of Energy and Natural Resources
    SP  - 11
    EP  - 19
    PB  - Science Publishing Group
    SN  - 2330-7404
    UR  - https://doi.org/10.11648/j.jenr.20140302.11
    AB  - Past decades increasing shares of forest resources have been diverted from the forest sector to the energy sector. The increasing utilization of forest fuel is, to a large extent, caused by economic policies introduced to reduce the emission of greenhouse gases. Since the energy sector is believed to continue to increase its use of forest fuel in the energy production in Sweden, it is of interest to investigate the effects of this. The purpose of this study is to analyses the extent and degree of forest resources competition in the presence of climate policy by accounting for the inter-linkages of forest resources utilization between the energy sector and the forest industries. A partial equilibrium model was thus constructed and applied to the Swedish forest sector and energy sector. A baseline scenario is calibrated using the GAMS software. Four scenarios with alternative development paths are then simulated and compared to the baseline scenario. The results indicate that the impacts on the procurement competition between the forest sector and the energy sector are relatively moderate also in situations of expanding production in the forest industries. An increase in the competition between industries in the energy sector can however be observed.
    VL  - 3
    IS  - 2
    ER  - 

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Author Information
  • Economics Unit, Lule? University of Technology, Lule?, Sweden

  • Economics Unit, Lule? University of Technology, Lule?, Sweden

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