European trade of forest products in the presence of EU policy

• Increasing the share of renewable energy is of principal concern for the EU energy policy. A number of policies have been adopted, and, in part, been implemented by the EU member countries. An increasing share of renewable energy implies an increasing utilisation of biofuels in general and of forest-based biomass in particular. However, in the EU, the endowment and uses of forest-base biomass are diverse suggesting that an increasing trade would become necessary in order to cost effectively increase the utilisation of forest-based biomass. The purpose of this study is to, in the presence of EU energy policy, quantify and analyse possible trade levels for forest fuels in the EU. Particularly, the consequences on trade after implementing the White Paper and the RES-E Directive are analysed. Investigating the European trade in forest fuels is important for understanding how industry sectors in the EU will be affected by the policies. The results suggest that the implementation of the White Paper and the RES-E Directive will increase the trade in forest fuels, resulting in total trade increases of up to 67 percent. Furthermore, the national net trading levels are possible to derive. Depending on policy implementation the results differ - a country that was net importing given the White Paper implementation can instead be net exporting when applying the RES-E Directive. The fact that the policy implementations will increase the trade may mitigate potential industry problems to secure the needed inputs. On the other hand, the integration of countries increases the possibility for some industries to increase their production even more, possibly strengthening any input scarcity problems. It is therefore not possible to generally conclude if a more integrated European forest fuel market, and hence an increased European forest fuel trade, will mitigate industry problems to secure their needed inputs or not.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

Keyword

Economics

Nationalekonomi

Publication and Content Type

ref (subject category)

art (subject category)