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Cost structure of and the competition for forest-based biomass
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.ORCID iD: 0000-0002-5194-4197
2006 (English)In: Scandinavian Journal of Forest Research, ISSN 0282-7581, E-ISSN 1651-1891, Vol. 21, no 3, p. 272-280Article in journal (Refereed) Published
Abstract [en]

Biomass has become a popular alternative to satisfy expanding energy demand and as a substitute for fossil fuels and phased-out nuclear energy in Europe. The European Union White Paper stipulates that the utilization of biomass shall increase to 1566 TWh by 2010. However it is often overlooked that the forest resources are already, to a large extent, used by the forest industries. When promoting biomass for energy generation the consequences for the forest industries also need to be considered. Sweden is an excellent case study, as there are vast quantities of forest resources, nuclear power is starting to be phased out, there are restrictions on expanding hydropower and the political desire exists to "set an example" with respect to carbon dioxide emissions. This paper attempts to estimate and analyse the supply of two types of forest resource, namely, roundwood and harvesting residues derived from final harvesting and commercial thinnings. Two separate supply curves are estimated: one forroundwood and one for harvesting residues. The cost structure is based on an economic-engineering approach where the separate cost components are constructed from the lowest cost element into aggregates for labour, capital, materials and overhead costs for each forest resource. The results indicate an unutilized economic supply of 12 TWh of harvesting residues in Sweden. However, after these 12 TWh have been recovered it becomes more profitable to use roundwood for energy purposes than to continue extracting further amounts of harvesting residues.

Place, publisher, year, edition, pages
2006. Vol. 21, no 3, p. 272-280
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:ltu:diva-3170DOI: 10.1080/02827580600688251ISI: 000238305300010Scopus ID: 2-s2.0-33745325368Local ID: 0f61fd20-c358-11db-9ea3-000ea68e967bOAI: oai:DiVA.org:ltu-3170DiVA, id: diva2:976026
Note
Validerad; 2006; 20060929 (evan)Available from: 2016-09-29 Created: 2016-09-29 Last updated: 2018-07-10Bibliographically approved

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Lundmark, Robert

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  • apa
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