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Factor substitution and procurement competition for forest resources in Sweden
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.ORCID iD: 0000-0002-5194-4197
2015 (English)In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 169, p. 99-109Article in journal (Refereed) Published
Abstract [en]

The utilisation of forest resources in the energy sector has been increasing, partly caused by economic policies introduced to reduce the emission of greenhouse gases. This in turn has led to an increase in the procurement competition between the forest industries and the energy sector. A translog cost function approach is used to analyse the factor substitution in the sawmill industry, the pulp and paper industry and the heating industry in Sweden over the period 1970–2008. The estimated parameters are used to calculate the Allen and Morishima elasticities of substitution as well as the price elasticities of input demand. The results indicate that it is easier for the heating industry to substitutes between by-products and logging residues than it is for the pulp and paper industry to substitute between by-products and roundwood. This suggests that the pulp and paper industry could suffer from an increase in the procurement competition. However, overall the substitutions elasticities estimated in our study are relatively low. This indicates that substitution possibilities could be rather limited due to rigidities in input prices. This result suggests that competition of forest resources also might be relatively limited.

Place, publisher, year, edition, pages
2015. Vol. 169, p. 99-109
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:ltu:diva-4141DOI: 10.1016/j.ijpe.2015.07.029Local ID: 20778283-27a9-4e80-93a8-bf3f0a82ef83OAI: oai:DiVA.org:ltu-4141DiVA: diva2:977005
Note
Validerad; 2015; Nivå 2; 20150819 (andbra)Available from: 2016-09-29 Created: 2016-09-29 Last updated: 2018-02-15Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
  • harvard1
  • ieee
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  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf