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Competition in the Forest Sector: An extensive review
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.ORCID iD: 0000-0001-7303-7769
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.ORCID iD: 0000-0002-5194-4197
Number of Authors: 22016 (English)In: Meeting Sweden's current and future energy challenges, Luleå: Luleå tekniska universitet, 2016, 2016Conference paper, Published paper (Other academic)
Abstract [en]

In this article, an extensive litrary review is conducted to examine the competitive state of the woody feedstock market. The aim is to review and assess the current state of knowledge relating to the competitive situation on feedstock markets, and how this knowledge has been implemented in forest sector models. The results suggests that woody markets may be too complex to be adequately described by economic theory. That is, even though the theoretical description of the feedstock market suggest that it may be at risk for noncompetitive behavior, the simultaneous and continuous decisions made by the market actors may reduce the probability of this outcome. However, studies that have found noncompetitive feedstock markets indicate that the degree of market power exerted will vary over time. This may signal unstable collusive carell or that forest industries are only able to exert market power over feedstock markets during economic recessions. The review also indicates that a majority of forest sector models examined do not reflect upon the competitive situation on feedstock markets. However, some exceptions are noted. Finally, an alternative description of how to view the competitive situation on forest markets is presented, together with some general findings and policies implications.

Place, publisher, year, edition, pages
2016.
Keywords [en]
Competition, market failure, backstop market, LOP, forestry, forest sector
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:ltu:diva-60935OAI: oai:DiVA.org:ltu-60935DiVA, id: diva2:1052301
Conference
Swedish Association for Energy Economics (SAEE) conference 2016, Luleå, August 23-24 2016
Available from: 2016-12-06 Created: 2016-12-06 Last updated: 2018-02-15Bibliographically approved

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Olofsson, EliasLundmark, Robert

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CiteExportLink to record
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Citation style
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